[Article] AI and the Muni Industry

In a recent Bond Buyer article, Ken Hoffman and Triet Nguyen weigh in on artificial intelligence in the muni industry.

As the Bond Buyer’s Robert Slavin writes, the municipal market is slowly beginning to incorporate artificial intelligence (AI) into workflow systems, tools that succinctly summarize documents, such as official statements, as well as internal and external communication systems. But it is far away from broad acceptance for an industry dependent on human interaction to get business done.

AI and the muni industry

In the article, Ken Hoffman, president of DPC DATA, said Open AI’s introduction of ChatGPT in November and subsequent upgrade with GPT-4 in March will impact the industry.

“Generative AI, such as Open AI’s ChatGPT, has shown that new content can be created based on data itself and not any predefined rules,” Hoffman said. “While it learns and can be trained by humans to create content based on examples and patterns, the results are more creative.”

While he wouldn’t commit to how AI will impact the muni market, Hoffman said, “it is conceivable that it will create content that is truly new and original,” including “investment suggestions, credit analysis and scoring, pricing evaluation, etc.”

DPC Data is investigating potential uses “for Generative AI, with an eye toward leveraging our extensive credit reference and financial database into new, innovative solutions for the municipal market,” said Triet Nguyen, DPC’s VP of Strategic Data Operations.

Read the rest of the Bond Buyer AI article.

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