Former Wall Street analyst building market AI on why stock pickers won't go extinct

The financial world is buzzing with concerns that generative AI might replace traditional roles, but a new development is stirring the pot. AlphaSense has introduced a groundbreaking tool named Deep Research, which operates at what the company describes as 'superhuman speed.' This AI-driven agent generates in-depth market insights and research, akin to a team of analysts working tirelessly to deliver investment-grade briefings. Jack Kokko, the CEO of AlphaSense and a former analyst at Morgan Stanley, expressed confidence in the future of Wall Street professionals amidst these technological advancements. In a recent interview with CNBC, he remarked, "It's a popular narrative that AI will take over jobs, but I wouldn't be so sure about that." Deep Research taps into AlphaSense's extensive database, which boasts over 500 million business and financial documents. This vast library includes everything from official filings and press releases to insights from expert interviews. Last year, AlphaSense made a significant move by acquiring Tegus, enhancing its capabilities with a collection of 250,000 business-focused interviews. Kokko noted, "There are numerous interviews about a single company, and no human could digest them all. However, Deep Research can analyze this information and generate queries in real-time." This innovative tool excels at answering questions that Wall Street analysts typically handle, doing so in mere minutes. Established in 2011, AlphaSense has been backed by prominent investors like Goldman Sachs Growth Asset Management and now serves a diverse clientele, including major players such as Amazon, Nvidia, and JPMorgan. The firm's client base grew by approximately 25% in 2024, exceeding 5,000 customers. Companies making substantial investments stand to benefit significantly from the insights provided by Deep Research. Kokko shared an example of a private equity firm that found the AI-generated report matched or exceeded the quality of work produced by its in-house analysts, which took weeks to complete. While some industry leaders express fears about AI's impact on jobs, Kokko maintains that the technology will enhance the productivity of analysts rather than replace them. He stated, "AI enables analysts and business professionals to operate with increased efficiency, resulting in higher returns on investment. Companies are unlikely to eliminate high-ROI employees." The conversation around AI's role in the workforce is growing, with CEOs like Shopify's leader emphasizing that job requisitions will now require justification if they can't be fulfilled by AI. The rapid integration of AI tools in financial institutions has accelerated since OpenAI's emergence in 2022. For instance, JPMorgan Chase and Morgan Stanley have introduced generative AI assistants to aid employees in various tasks. Kokko believes that the productivity boost from AI collaboration is substantial, stating, "It's ten times the previous productivity when you combine human intelligence with machine capabilities." As the landscape evolves, the narrative surrounding AI and job security will continue to be pivotal in shaping the future of work in finance.