Is the Citrini effect a bigger threat to sell side research than AI
Market moving blog post on disruption from AI
A lot has been written about the potential for AI to make sell-side research obsolete. The efficiencies it offers will lead to a shrinking of junior headcount required to do grunt work like excel modelling, Powerpoint, and data gathering. It may even help construct sections of reports.
But are independent analysts a bigger threat to sell-side research than the machines taking over?
Until this week, I would have said, not really.
The advantages of sell side research over independent analysts like Citrini included:
A formal training ensuring a higher degree of financial literacy including forecasting and valuation,
A level of quality control as the internal (equity sales) and the external client base (buy side) is relatively sophisticated and knowledge,
Distribution - Having tens or even hundreds of thousands on a distribution list is powerful for an independent analyst, but Institutional Investor ranked analysts at tier 1 banks have deeper connectivity into the huge asset managers and hedg…
