Page 6 - SPi Global Whitepaper_Transform, Content to Actionable Data and Unlock New Business Opportunities Through AI

6 Transform, Content to Actionable Data and Unlock New Business Opportunities Through AI Transform, Content to Actionable Data and Unlock New Business Opportunities Through AI 7
Using AI to Meet New
Financial Regulations Most of this financial research is delivered
via email, so to ensure that its clients are
meeting regulations, SPi Global developed an
Email Classification System that analyzes and
categorizes all incoming emails. The technology
scans content within the email, as well as any
attachments, identifying what research the
company actually pays for and which incoming
research may not be MiFID II compliant. Emails
that are compliant are allowed to pass through
to the appropriate financial professionals.
Those that are not compliant are flagged for
further analysis.
The ability to recognize concepts and categorize them using machine learning and natural
language processing is a cornerstone to SPi Global’s AI solutions. SPi Global customizes this
approach to meet a variety of industry-specific needs. For example, in the financial sector, this
technology helps firms sift through research and weed out content that does not meet new
regulatory requirements.
SPi Global has several financial clients who must adhere to far-reaching financial regulations SPi Global built machine learning into the
that went into effe ct in the European Union in 2018. The EU passed the Markets in Financial Email Classification System, and it is informed
Instruments Directive II (MiFID II) in order to create greater regulation and transparency around by business rules. “The system was developed
financial research content. using insights from subject matter experts who
understand the nuances of MiFID II regulations
Under this law, buy- side firms are required to track inducement risk and consumption of research minutely,” says Venky. “They developed a corpus
they receive from sell- side firms. This research provides financial advice that could influence of manually classified emails that were used to
markets, so managers document all the research information they receive and flag inducement train the model. This follows the process of
risk. Inducements, in the financial sector, are when brokers offer research for free to induce fund supervised learning.”
managers to trade with them.
© SPi Global Content Solutions © SPi Global Content Solutions
The automated solution saves companies
millions of dollars in labor costs and legal fees,
adds Jishnu. “Just to adhere to this regulation,
firms would need to hire about 20 to 30 analysts
to classify incoming research,” says Jishnu.
“With our application, they only need a couple
of analysts to sift through the data as the
classification is done by the system. Our tool is
90% accurate, so it is simply a matter of the
analysts validating the results. On top of that,
our technology creates an audit trail that
demonstrates our clients are MiFID II compliant.”
The same email classification approach is
applicable to a variety of industries, says Venky.
Publishers, for example, can use this system to
better manage the publishing workflow with
respect to author management.
Project managers receive thousands of emails
daily related to ongoing publishing projects
that are in different stages of production.
The Email Classification System can analyze
and categorize these emails so that project
managers immediately know which publication
they relate to, what stage of the production
process they are in, and even the level of priority.
The technology speeds up the publishing work-
flow and empowers project managers to respond
to the most important emails first and improve
the service levels provided to the authors.