Artificial Intelligence in Investment Banking: Automating Deal Structuring, Market Intelligence, and Client’s Insights Through Machine Learning

Authors

  • Abdulateef Oluwakayode Disu

    Computer Science Department, Faculty of Computing and Engineering Sciences, Babcock University, Ilishan-Remo, Ogun State, Nigeria
    Author

  • Henry Makinde

    Department of Information, Library, and Research Sciences (ILRS), University of North Carolina, USA
    Author

  • Olajide Alex Ajide

    University of Virginia, Darden School of Business, Charlottesville, VA, USA
    Author

  • Aniedi Ojo

    The Fuqua School of Business, Duke University, Durham, North Carolina, USA
    Author

  • Martin Mbonu

    Columbia Business School, Faculty of Business, New York City, USA
    Author

Keywords:

AI and ML; Investment Banking; Market Intelligence; Financial Technology; Digital Transformation

Abstract

This study examines how artificial intelligence transforms investment banking operations through deal structuring automation, market intelligence generation, and client insight development. Using the Technology-Organization-Environment framework and Resource Based View, we investigate AI’s impact on operational efficiency, decision-making accuracy, and competitive advantage. Through mixed-methods analysis of 47 investment banks (2019-2022) and interviews with 32 senior executives, we find that AI reduces transaction time by 34%, improves valuation accuracy by 23%, and enhances client satisfaction by 41%. However, implementation faces barriers including data quality issues (73% of respondents), regulatory compliance concerns (68%), and talent challenges (61%). We identify three AI maturity archetypes pioneers (21%), followers (52%), and laggards (27%) each with distinct strategies and outcomes. This research contributes empirical evidence of AI’s impact on investment banking and offers practical insights for digital transformation

Author Biographies

  • Henry Makinde, Department of Information, Library, and Research Sciences (ILRS), University of North Carolina, USA



  • Olajide Alex Ajide, University of Virginia, Darden School of Business, Charlottesville, VA, USA



  • Aniedi Ojo, The Fuqua School of Business, Duke University, Durham, North Carolina, USA



  • Martin Mbonu, Columbia Business School, Faculty of Business, New York City, USA



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Published

2022-12-30

Issue

Vol. 8 No. 4 (2022): VOLUME 8 ISSUE 4

Section

Articles

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