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LSEG and Microsoft to develop generative AI models

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The London Stock Exchange Group (LSEG) has entered into a strategic partnership with Microsoft to develop new generative AI models.

The UK stock exchange is looking to capitalise on the benefits of generative AI in the financial sector following major strides in the technology stemming from Microsoft-backed OpenAI, the creator of ChatGPT.

The partnership will see LSEG put its data and industry expertise towards AI tools for banking and financial services.

“We are progressing well with the implementation phase of our transformational strategic partnership with Microsoft, with customers beginning to see the benefits from next year,” said LSEG CEO David Schwimmer.

“We are having conversations with customers about the opportunity for them to use the vast amount of data we have available, to commingle that with their data in a secure proprietary [manner],” he said, as the exchange and data group reported first-half results on Thursday.

Schwimmer said generative AI can be useful for large banks and other financial institutions that have a lot of proprietary data for trading strategies and risk management.

Microsoft acquired a 4% stake in LSEG last year and has a seat on the board.

While generative AI has presented a major opportunity across many industries, there are concerns over its accuracy. Generative AI models, including OpenAI’s ChatGPT, are known to sometimes ‘hallucinate’ and share fabricated information as fact.

UKTN has reached out to LSEG for further comment.

Read more: A guide to generative AI