U.S. investment bank Morgan Stanley (MS) is employing more artificial intelligence (AI) tools, following a trend seen in industries from media to healthcare.
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Morgan Stanley already had a tool built around OpenAI’s ChatGPT for its wealth management department. However, just a couple months ago, Morgan Stanley built a separate version for the institutional securities group that it called AskResearchGPT.
With this tool, users can gain access to a range of information using specific queries rather than trying to pull the information out manually through reading. With over 70,000 reports a year produced at Morgan Stanley, that can be a lot to wade through.
Growing AI Use at Morgan Stanley
The rise of AI tools at Morgan Stanley is now so pronounced that nearly half of its employees have access to at least some form of AI tool.
The report noted that the employees in question are taking to the tools, saving time and resources over the earlier alternatives of phone calls and emails to the research department. Employees are asking the AI tools three times the questions that they were previously, so that is more work done in the same amount of time.
A Bond Market Unruffled by Trump
Separately, there is some good news for the U.S. bond market. Morgan Stanley said that, should Donald Trump win the upcoming presidential election, the bond market will likely resist any selloff.
Despite the fact that a second Trump administration would be different from the Biden administration, Morgan Stanley is recommending that bondholders remain neutral. A Republican sweep would be different from what it was in 2016, and any rise in yields would be largely contained, according to a team of Morgan Stanley strategists.
Is Morgan Stanley Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on MS stock based on six Buys, nine Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 72.25% rally in its share price over the past year, the average MS price target of $120.31 per share implies 1.72% upside potential.
