FactSet Research Systems Inc.

Use of Artificial Intelligence

• Investment and Monetization:

  • FactSet has invested significantly in its AI suite, aiming to empower employees and enhance product offerings.
  • The company anticipates 30 to 50 basis points of growth in FY 2025 from the monetization of its generative AI (Gen AI) initiatives, indicating a direct correlation between AI investments and revenue growth.

• AI Product Adoption:

  • Feedback on Gen AI products has been exceptional, with several products already monetized, including:
    • Conversational API: Allows clients to integrate FactSet's capabilities within their environments.
    • Pitch Creator: A tool designed to automate pitch creation for banking, expected to alleviate workload for junior bankers.
    • Portfolio Commentary Solution: Provides rapid and auditable insights compared to traditional methods, achieving significant efficiency gains.

• Client Value Proposition:

  • The primary focus is on enhancing client productivity and operational efficiency. For example:
    • The Pitch Creator is designed to save hundreds of hours for analysts, significantly reducing time spent on template creation and model adjustments.
    • The company's approach to AI emphasizes brute force efficiency while ensuring clients feel they receive tangible value without facing significant expense spikes.

• Strategic Outlook:

  • FactSet has embraced AI as a core element of its strategy, stating that it enables better engagement with clients and allows the company to expand its reach to tech-focused budgets.
  • Moving forward, integrating AI across platforms is seen as a key driver of growth, allowing FactSet to maintain competitive advantages while enhancing its product portfolio.

Summary

FactSet Research Systems Inc. has strategically positioned itself to leverage artificial intelligence to enhance operational efficiencies and deliver high-value solutions to clients, with promising growth expectations linked to its Gen AI offerings. The company's ongoing enhancements in AI capabilities are anticipated to significantly impact revenue positively, reflecting an innovative approach to meet evolving market demands.