3 questions to Alexandra Soto, Lazard Chief Operating Officer
3 Questions to Alexandra Soto - Lazard Chief Operating Officer, a Group Executive Director on the group management board, and a Senior Partner with over 33 years of investment banking experience.
“Artificial Intelligence is not just a technological transformation - it’s also a cultural transformation”
At the heart of Lazard’s global operations, Alexandra Soto has built a distinguished career that spans more than thirty years in international investment banking. As the firm’s Chief Operating Officer, Group Executive Director and Senior Partner, she brings a unique perspective on how cultural heritage, client focus and innovation intersect in today’s financial world. In this interview, she reflects on the transformative role of artificial intelligence, the enduring importance of Lazard’s European roots and the progress and challenges of diversity and inclusion in the industry.
How is AI impacting your business model? Lazard is at the forefront of the AI through your investment in Rogo, how are you thinking about it?
Artificial Intelligence has been influencing and impacting our two businesses for a long time, albeit in different ways. In asset management, it represents a complete transformation with consequences across every area: research, the investment process, and distribution. In investment banking, the transformation is more subtle but equally significant.
Our businesses involve both “art” and “science”, and the scientific aspect may eventually be completely replaced. AI helps amplify the impact of bankers. It’s not just a technological change - it’s also a cultural shift. We are only at the beginning of this evolution.
All our bankers and investors have access to several AI tools, and we pay close attention to user feedback. AI will not replace bankers, but bankers and investors who use AI effectively will replace those who do not. Proprietary data are becoming crucial in each company to feed the AI tools and to differentiate your services.
In both of our businesses, we are still identifying the full range of potential use cases. Clearly, the time savings and quality improvements in research and analysis free up valuable resources. That time must be repurposed to enhance the quality of the advice we provide to clients, foster creativity, increase the impact of our senior bankers, and deepen as well as increase the frequency of our client interactions.
We should never forget that our clients are also evolving. To remain relevant, we must continuously improve the quality and value of our services.
AI is both a technological disruption and a cultural shift, marking an exciting evolution for management teams. We have invested heavily in training our employees, especially senior-level staff. Our training programs are tailored to individual needs, with an emphasis on repetition and clear communication.
We recognize that the evolution and adoption of Artificial Intelligence are inevitable. While the exact timeline and pace of its acceleration remain uncertain, the direction is clear. We must remain vigilant and forward-thinking as we face these developments. This is only the beginning of Artificial Intelligence. "The 'augmentation' will impact all banking functions universally. I am convinced that this fundamental transformation is very positive, as repetitive tasks with no real added value will disappear. However, it will be essential to adapt in order to continue adding greater value for our clients."
Lazard is unique as an American firm with strong European roots. How do you protect and nurture such a culture while centralising resources and decisions?
Lazard’s culture, DNA and history are built on a balance between three offices: London, Paris and New York. One of the strengths that sets Lazard apart from some of its competitors is the depth of its European roots, its strong connection to networks in each country. Transatlantic flows are crucial for our two businesses, but fundamentally, our longstanding presence in the United States, dating back 176 years, allows us to benefit from the strength of the American economy.
At Lazard, the fundamental principle is putting the client first. This was the case for instance when we defined remote-work rules. Work from home policies were adopted in ways that mirror how clients work in each country. The client’s interest is paramount. However, this cultural flexibility does not undermine business practices or our fully coordinated and transparent approach.
Over the span of your career, how the role and place of women have evolved? Will the next CEO of Lazard be a woman?
Inclusion is an important objective for Lazard. I think it’s fair to say that, when it comes to women, Lazard is an attentive employer and a “great place to work.”
We try to provide a certain flexibility and to listen to their needs. We have women in positions of responsibility in every country to demonstrate that it’s possible to progress and build a career at Lazard as a woman. Our policy has not changed and remains first and foremost based on meritocracy.
Progress is very slow. I am still often the only woman in meetings at my level, that’s the reality. Finance in general, and investment banking in particular, attract fewer women. We’re also very committed to social inclusion for people who come from different socio-economic backgrounds. It’s essential to help them adapt and master the social and cultural codes.