Generative AI's Triumph at Nasdaq: A Testament to Engineering Innovation

Since ChatGPT's introduction several months ago, Nasdaq, the stock exchange operator, has witnessed a fascinating divergence in the adoption of newer artificial intelligence technologies within its ranks. While engineers and marketers eagerly embrace these innovations, the company's legal team approaches them with caution, as revealed by Nasdaq's Chief Technology and Chief Information Officer.

Within the intricate framework of Nasdaq, a global market technology provider, various departments have embarked on the exploration of generative AI, a technology akin to the viral chatbot, capable of generating text and content based on historical data, according to Brad Peterson's insights at the Reuters MOMENTUM conference in Austin.

One notable venture involved a "hackathon" organized by a specific unit, where they collaborated to integrate generative AI into their product aimed at combating financial crime. Peterson noted that this technology could be harnessed to produce investigative reports, particularly within their division named Verafin, which has also leveraged AI to address issues like wire fraud and the detection of altered checks.

As Peterson stated, "There's going to be a race on the deepfakes," emphasizing the importance of staying ahead of the curve in tackling emerging AI challenges.

In the realm of software development, Nasdaq's computer programmers are increasingly turning to AI for code suggestions, while marketers explore the potential of ChatGPT-style programs to craft engaging blog content.

Conversely, the legal department, which many expected to readily adopt AI for summarizing lengthy documents, exhibits a more cautious stance. According to Peterson, "The legal team is naturally a bit more cautious."

To address potential concerns surrounding AI, Nasdaq has implemented a permission-based approach. Employees must register and undergo training before accessing certain AI tools internally. Notably, engineers have shown greater interest, submitting more permission requests than their legal counterparts. While Nasdaq does not immediately prohibit AI tools, it is committed to responsible usage.

"We're not going to go dark early," Peterson assured, indicating their commitment to exploring AI's potential while maintaining appropriate safeguards.

Despite having employed various AI technologies for several years, Nasdaq's latest AI initiatives remain in the experimental phase. Peterson highlighted that no AI-generated code has been published as of yet. The company's legal team is actively engaging with vendors to clarify ownership of the final AI-generated output.

Nasdaq predominantly collaborates with Amazon Web Services but maintains flexibility in its technology partnerships. Regarding Microsoft, which is heavily invested in ChatGPT's creator, OpenAI, Peterson affirmed, "We are absolutely a big user of the whole Office Suite and the corporate email and Teams." Microsoft is also introducing generative AI features in these products, reinforcing Nasdaq's commitment to staying at the forefront of technological advancements.