Dan Reid is Founder and CTO of Xceptor, a provider of data automation software.
What was the highlight of 2024?
A major highlight of 2024 was the evolution of AI adoption. As the hype surrounding AI as a universal problem-solver cooled, capital markets firms moved toward a more grounded and pragmatic approach. In doing so, firms targeted AI efforts on specific challenges with measurable impact and outcomes. For example, AI played an increasingly transformative role in processing unstructured data, which has long frustrated the financial services industry.
Also notable was the democratization of AI, made possible with tools like generative AI (GenAI) powered by large language models (LLMs). GenAI became accessible to non-technical operations teams, empowering them to streamline workflows and independently solve complex problems with little reliance on data science expertise. As AI became embedded across daily operations, firms enhanced efficiency and established a foundation for more integrated and practical technology use.
What surprised you in 2024?
In the lead up to T+1 settlement in North America in May 2024, there was considerable nervousness amongst industry players, and thus, it was a pleasant surprise for many that the transition went smoothly, owing to the extensive preparation by market participants. Importantly, the transition underscored the need for optimized organizational agility. Leaders recognized the pressing need to empower operations teams with technologies to control their processes and respond swiftly to regulatory changes. As a result, they have elevated the importance of adopting automation, not only to ease T+1 transition, but also develop adaptable operational models that can accommodate changes in global finance.
Another unexpected development was the rapid speed at which emerging technologies such as vector databases and retrieval-augmented generation (RAG) were adopted. These innovative solutions leverage advanced AI models to enhance knowledge bases, compliance, and document verification processes. Initially limited in scope, they quickly gained traction due to their potential to improve accuracy and relevance in high-stakes decision-making.
What are your expectations for 2025?
In 2025, I expect data automation and AI to drive even deeper transformations across capital markets. Firms will continue to integrate AI into broader operational processes, creating opportunities to optimize workflows, improve risk management, and enhance customer interactions.
A key focus will be unlocking new sources of value from unstructured and alternative data, such as social media sentiment and nontraditional credit metrics, to inform more nuanced decision-making. As firms develop adaptable systems to meet evolving compliance requirements, regulatory agility will become an imperative, supported by tools that trace data origins and offer real-time updates to ensure transparency and efficiency. Additionally, I anticipate a heightened emphasis on human-AI collaboration, with automation augmenting rather than replacing human roles, allowing teams to concentrate on strategic innovation and long-term growth.
The firms that excel in 2025 will be those that prioritize adaptability, efficiency, and client-centric strategies while leveraging cutting-edge tools to redefine operational excellence.
