Clearwater Analytics uses GenAI and SageMaker to enhance investment management, enhance efficiency, and handle data complexities.

Clearwater Analytics is enhancing investment management by utilizing GenAI via Amazon SageMaker JumpStart. As data growth accelerates, capital markets face challenges in managing vast datasets crucial for strategy and risk management. Clearwater’s generative AI initiatives aim to enhance productivity and streamline operations using large language models (LLMs) hosted on SageMaker.

Clearwater’s venture into GenAI began with a secure, chat-based assistant enhancing internal processes. This move helped expand assets under management (AUM) by over 20% without extra staffing. The AI solutions include three core applications: Clearwater Intelligent Console (CWIC), Crystal, and CWIC Specialists. CWIC aids customers by leveraging knowledge and application awareness through the Retrieval Augmented Generation (RAG) framework. Crystal, with broader data access, boosts internal operations, achieving efficiency gains between 25% and 43%. CWIC Specialists are domain-specific agents aimed at addressing nuanced investment tasks, ultimately improving Clearwater’s capabilities without increasing workforce.

Clearwater’s AI architecture uses advanced and fine-tuned models. For complex tasks, it employs models like Anthropic’s Claude and Meta’s Llama, adept at handling sophisticated queries. For domain-specific applications, it deploys fine-tuned models using SageMaker. Domain adaptation is key, allowing efficient model training with minimal data, reducing costs, and enhancing performance. This capability enables Clearwater to ensure its AI-driven solutions are tailor-made and effective.

Evaluating and optimizing these models is crucial. Clearwater’s system ensures only superior models are integrated, enhancing investment management and risk compliance. Their approach emphasizes iterative fine-tuning and continual learning to maintain model relevance. By partnering with AWS, Clearwater navigates domain adaptation complexities efficiently. This focus on smarter, more specialized AI models promises to elevate Clearwater’s position in investment management, showcasing how businesses can leverage tailored AI solutions for competitive advantages.