As generative AI tools become embedded in investment banking workflows, ensuring output quality is no longer optional, it’s imperative. From pitch decks to market summaries, genAI can speed up delivery and unlock productivity. But without robust validation practices, that speed could come at the cost of accuracy, compliance, and client trust.
Why Validation Matters in Investment Banking
The LexisNexis Future of Work 2025: Innovating the Industry – GenAI and the Rise of the Creative Financial Professional report reveals that 81% of financial professionals are already using genAI-based tools in their daily work, and more than one-third say genAI contributes to at least 30% of their overall work processes. The adoption of genAI has evidently progressed beyond experimental phases and is now firmly integrated into the operational workflows of many investment banking institutions.
Yet, the same report highlights a critical gap: trust in genAI outputs is still developing.
- 34% of professionals cite concerns about accuracy
- 52% worry about privacy and data security
- Only 15% say they receive advanced training on AI tools
This data paints a clear picture: the financial sector is embracing genAI, but validation protocols must evolve to catch up.
Investment banking deals with sensitive financial modelling, valuation, risk assessment, and compliance-heavy communications. An unchecked genAI output could misinterpret market signals, introduce subtle factual inaccuracies, or fail to reflect current regulatory requirements. Even a polished-looking summary can create reputational risk if it's based on outdated or hallucinated data.
In such a high-stakes environment, validation is not just about improving accuracy, it’s about protecting credibility, ensuring regulatory compliance, and supporting confident decision-making.
Building a Culture of GenAI Validation
To mitigate these risks and maximize genAI’s value, validation must be embedded into firmwide workflows. This includes:
- Source transparency and traceability
Outputs need to be backed by trusted, verifiable data. Investment banks should prioritize genAI tools that can clearly cite or connect to authoritative content sources. The report emphasizes that quality and accuracy of AI output is the top factor cited by 68% of professionals considering the tool. - Human-in-the-loop reviews
While genAI can draft faster, it cannot replicate industry nuance or strategic intent. Outputs, especially those shared with clients, regulators, or senior stakeholders, should undergo thorough human review. This protects against not only factual errors but also tone, framing, and context misalignment. - Institutional training
With only 14% of financial firms offering advanced genAI training, there’s a clear opportunity to elevate internal expertise. Creating internal “validation checklists” can help standardize quality control across teams, reducing reliance on a few expert reviewers. - Feedback loops for continuous improvement
Validation isn’t a one-off task. Organisations that establish structured feedback channels for AI outputs, such as flagging hallucinations, identifying weak spots, and refining prompts can improve tool performance over time and sharpen prompt engineering best practices.
From Caution to Confidence
Investment banks are uniquely positioned to lead the way in responsible genAI use. They understand both the promise of emerging tech and the pitfalls of rushing it. By validating outputs rigorously, banks can embrace genAI as a true partner—one that enhances productivity and insight without compromising quality or compliance.
As the report reveals, 96% of financial services professionals agree that developing new skills is essential for future success. Validation is one of those skills. In a landscape where speed, accuracy, and trust define competitive advantage, building strong validation protocols is not just best practice, it’s business-critical.
Want deeper insights into how financial professionals are approaching genAI validation, training, and adoption?
Download the LexisNexis Future of Work 2025: Innovating the Industry – GenAI and the Rise of the Creative Financial Professional for more data-backed insights.