How AI is Reshaping Finance, Business, and Public Sector Efficiency

Welcome to This Week’s NexaQuanta Newsletter!

As AI continues to revolutionize industries, this week’s edition brings you the latest advancements shaping enterprise AI, government efficiency, and the future of banking.

IBM has expanded its AI offerings on watsonx.ai, introducing DeepSeek R1 distilled models and enhancing enterprise AI capabilities with advanced reasoning and problem-solving.

Meanwhile, Granite 3.1 makes AI more accessible for businesses, offering enhanced safety, efficiency, and multilingual capabilities.

OpenAI’s ChatGPT Gov is transforming government operations with AI-powered automation, ensuring security and regulatory compliance in the public sector.

Lastly, IBM’s latest study highlights how Generative AI will drive financial performance in banking, with institutions moving from pilot projects to large-scale implementation.

From enterprise AI to digital transformation in finance, this week’s insights showcase how AI is reshaping industries at an unprecedented pace.

DeepSeek R1 Distilled Models Now Available on IBM watsonx.ai

IBM has introduced DeepSeek R1 distilled models on watsonx.ai, expanding AI capabilities for enterprise users.

The newly available models include Llama 3.1 8B and Llama 3.3 70B, optimized for advanced reasoning and problem-solving.

What is DeepSeek-R1?

DeepSeek-R1 is an open-source LLM developed by DeepSeek, a Chinese AI startup. It uses reinforcement learning and knowledge distillation to enhance AI performance. 

The model is designed for complex reasoning tasks, making it a strong competitor in the AI space.

Key Use Cases

1. Planning – DeepSeek-R1 supports chain-of-thought reasoning, making it useful for automated decision-making.
2. Coding – The model assists in generating, debugging, and optimizing code.
3. Mathematical Problem – Solving – It excels in handling complex computations for research and engineering.

Why Use DeepSeek on watsonx.ai?

1. Deploy on Demand – Users can launch DeepSeek models on dedicated GPUs through IBM’s Deploy on Demand catalog.
2. Data Security – IBM ensures that AI models remain secure, with no external data sharing.
3. Seamless Integration – DeepSeek models work with frameworks like LangChain, CrewAI, and IBM watsonx—governance for responsible AI implementation.

Getting Started

1. Open the Resource Hub in IBM watsonx.ai.
2. Navigate to the Pay by the Hour section.
3. Select and deploy a DeepSeek model for immediate use.

With DeepSeek-R1 now available on watsonx.ai, businesses can leverage powerful AI models with enhanced security, flexibility, and enterprise-grade governance.

For more details, please visit this link.

Granite 3.1: What Non-Developers Need to Know

IBM has introduced Granite 3.1, the latest update to its enterprise AI model suite, designed for business applications.

With a focus on trust, efficiency, and customization, this update makes AI more accessible for businesses, even those without technical expertise.

Why Granite?

1. Tailored AI – Models are optimized for specific business tasks like document processing and forecasting.
2. Enhanced Safety – The Granite Guardian feature ensures responsible AI usage and data privacy.
3. Cost-Efficient – Smaller, fine-tuned models reduce computational costs without compromising performance.
4. User-Friendly Customization – With InstructLab, non-technical users can fine-tune models using AI-generated examples.
5. Transparency – Granite 3.1 is open-source (Apache 2.0 license), ensuring full visibility of its work.

Key Features of Granite 3.1

1. 128K Token Context Length – Processes large documents, books, and multi-hour conversations simultaneously.
2. Hallucination Detection – New function-calling observability improves accuracy in automated tasks.
3. Multilingual Embeddings – Supports 12 languages, enhancing global market applications.
4. Broad Availability – Now accessible on IBM watsonx.ai, Docker, Hugging Face, LM Studio, Ollama, and Replicate.

How Can Granite Help Your Business?

1. Text Summarization – Quickly condense reports and legal documents.
2. Data Extraction – Identify insights from customer feedback and support tickets.
3. Content Generation – Automate emails, reports, and product descriptions.
4. Forecasting – Predict sales trends and system performance.
5. Industry Applications – Helps businesses in finance, agriculture, and customer service with AI-driven insights.

Getting Started

If your business lacks an AI team, IBM Consulting™ offers guidance with 20,000+ AI experts to help design and scale AI solutions.

Learn more by clicking here.

Introducing ChatGPT Gov: AI-Powered Efficiency for U.S. Government Agencies

OpenAI has launched ChatGPT Gov, a specialized version of ChatGPT designed for U.S. government agencies. This initiative aims to enhance efficiency, security, and AI-driven decision-making in the public sector while ensuring compliance with strict regulatory frameworks.

Why ChatGPT Gov?

1. Secure Deployment – Agencies can self-host ChatGPT Gov on Microsoft Azure (commercial and government cloud), ensuring compliance with IL5, CJIS, ITAR, and FedRAMP High-security standards.
2. Advanced AI Capabilities – Includes GPT-4o, excelling in text analysis, coding, summarization, image interpretation, and mathematics.
3. Custom GPTs – Government employees can create and share task-specific AI assistants.
4. Enterprise-Grade Features – Includes workspace collaboration, file uploads, and an admin console for IT teams to manage users and security.
5. Future Expansion – OpenAI is working towards FedRAMP accreditations and exploring availability in Azure’s classified regions.

Government Adoption So Far

1. Air Force Research Laboratory – Uses ChatGPT Enterprise for coding, internal resource management, and AI education.
2. Los Alamos National Laboratory – Integrating AI into scientific research and bioscience studies.
3. State of Minnesota – Using ChatGPT Team for faster, more accurate multilingual translations, reducing costs and turnaround times.
4. Commonwealth of Pennsylvania – AI pilot program participants saved 105 minutes daily on routine tasks with ChatGPT Enterprise.

With over 90,000 users across 3,500+ agencies, ChatGPT is already transforming public sector operations. Learn more about ChatGPT Gov and its impact on government efficiency.

For further details, visit this link.

IBM Study: How Gen AI Will Reshape Banking in 2025

A new IBM Institute for Business Value study predicts that Generative AI (Gen AI) will significantly boost financial performance in banking by 2025. Banks are shifting from pilot programs to enterprise-wide AI strategies, unlocking new efficiencies, revenue streams, and customer experiences.

Key Takeaways from the Report

1. Gen AI adoption is accelerating – In 2024, only 8% of banks used Gen AI systematically, while 78% had a tactical approach. 2025 marks the shift to large-scale deployment.
2. Banking models are evolving – The gap between financial leaders and laggards is widening as institutions reimagine business models and execution strategies.
3. Risk vs. Reward – 60% of banking CEOs agree that embracing some level of risk is necessary to stay competitive with automation and AI.
4. Digital Banking Growth – Over 16% of clients globally are now comfortable with branchless, fully digital banking, with a shift towards high-value services like embedded finance and wealth advisory.

What This Means for Financial Institutions

1. Strategic AI Investment – Banks must move beyond experimentation and implement agentic AI to streamline services and drive new growth.
2. Customer-Centric Innovation – From personalized advisory services to embedded finance, banks must deliver tailored, high-value solutions.
3. Operational Transformation – AI-powered automation will enhance efficiency, reduce risk, and modernize IT infrastructure.

As banks double down on transformation, AI will be a key differentiator in the race for innovation, efficiency, and profitability.

Read the full report here.

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