The tools include an AI-powered chatbot to answer simple customer questions as well as several AI-powered ‘copilots’ which will produce ‘first drafts’ aimed at boosting employee productivity, according to the company officials. According to an internal BlackRock memo, some of the first steps outlined outline a USD 9.1 trillion approach to generative AI.
BlackRock's memo details its strategy to 'democratize coding' by enabling 'everyone the ability to code' with the aid of generative AI – 'Users can speak in their natural language, and AI models will write the code, making English the coding language of the future,' the memo emphasizes.
The document underscores the company's commitment to developing its own AI tools, leveraging its proprietary data and technology, instead of purchasing them from the open market. ‘Notably, they are building tools where we can develop a unique advantage as BlackRock, versus buying tools that will be standard across the industry,’ the memo said.
BlackRock's technology platform, Aladdin – which generated USD 1.4 billion in revenue in 2022 – is used by over 1,000 outside firms for some or all of their investment processes, meaning BlackRock has a lot of valuable data with which to work.
In the memo, the firm stated that it planned to take a ‘walled garden’ approach to generative AI, meaning its tools will be powered by its own data alone and that data will not ‘leave (BlackRock's) walls to fit other GenAI models.’
In June 2023, BlackRock has submitted an application to the Securities and Exchange Commission (SEC) for a spot bitcoin exchange-traded fund (ETF). If approved, this ETF would trade on the Nasdaq stock market, becoming one of the first publicly traded spot bitcoin ETFs in the US.
BlackRock, a USD 9 trillion money manager, already operates a private spot bitcoin trust launched in 2022 and aims to expand its partnership with Coinbase, the custodian for the proposed fund. The potential approval of BlackRock's spot bitcoin ETF could be a positive development for the crypto market amid recent challenges, including the FTX collapse in 2022 and the SEC's lawsuits against Coinbase and Binance in June 2023.
However, SEC approval remains uncertain, given previous rejections of similar proposals due to concerns about unregulated exchanges and manipulation risks. The move also coincides with the SEC's proposed custody rules for asset managers. If approved, BlackRock's ETF could provide a more familiar and accessible option for the 80% of Americans who haven't owned bitcoin.
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