Financial ServicesGenerative AI

Vanguard estimates AI ROI at close to $500 million across call center, advisor and coding use cases

Vanguard Group

Vanguard Group estimates its return on investment from AI at close to $500 million. Columnists Thomas H. Davenport and Randy Bean, writing in MIT Sloan Management Review, describe several proven AI use cases at the asset manager: AI agents in the call center help representatives draw answers from internal content and resolve issues faster; autogenerated, personalized summaries of Vanguard market perspectives help advisers keep clients informed; AI-assisted code generation has improved programming productivity by 25% and trimmed the system development life cycle by as much as 15%; and a large language model analyzes corporate earnings calls for signals that dividends will be cut. Vanguard also continues to monitor AI model performance and utilization, and reports that 50% of employees have completed training through the Vanguard AI Academy.

Overview

Vanguard Group estimates its return on investment from AI at close to $500 million. Columnists Thomas H. Davenport and Randy Bean, writing in MIT Sloan Management Review, describe several proven AI use cases at the asset manager: AI agents in the call center help representatives draw answers from internal content and resolve issues faster; autogenerated, personalized summaries of Vanguard market perspectives help advisers keep clients informed; AI-assisted code generation has improved programming productivity by 25% and trimmed the system development life cycle by as much as 15%; and a large language model analyzes corporate earnings calls for signals that dividends will be cut. Vanguard also continues to monitor AI model performance and utilization, and reports that 50% of employees have completed training through the Vanguard AI Academy.

The solution

Vanguard Group has deployed several AI use cases: AI agents in the call center help representatives draw answers from internal content and resolve issues faster; autogenerated, personalized summaries of Vanguard market perspectives help advisers keep clients informed; AI-assisted code generation supports its developers; and a large language model analyzes corporate earnings calls for signals that dividends will be cut. Vanguard also continues to monitor AI model performance and utilization, alongside a few dozen additional pilots that IT leadership has not yet rolled out at scale until the kinks have been worked out.

Generative AILarge Language ModelsConversational AI

Reported business value

Vanguard Group estimates its return on investment from AI at close to $500 million. AI-assisted code generation has improved programming productivity by 25% and trimmed the system development life cycle by as much as 15%. Using AI has helped Vanguard improve efficiency for contact center workers and advisers, broaden access to human support for investors, and roll out digital advisory services for clients investing as little as $100.

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