How Wall Street banks are using AI to change finance
As the artificial intelligence (AI) revolution unfolds, businesses are finding it hard to withstand the pull of the new technology. From corporations to mom-and-pop shops, everyone wants a piece of the AI pie. Even Wall Street banks are finding it hard to resist AI's charms. Let's see what some of the biggest banks in the world are doing with AI.
Why does this story matter?
The incredible success of ChatGPT and its ilk have shown us one thing - AI could be the next internet. The technology can potentially revolutionize the way we think and act. AI could have a lasting impact on every sector imaginable. The financial sector is no different. How banks handle AI could determine their success or failure in the next 10 years.
JPMorgan advertised 3,651 AI-related roles
JPMorgan Chase & Co., the biggest American bank, is leading Wall Street's AI charge. In April, Jamie Dimon the bank's CEO, called AI "extraordinary and groundbreaking." According to business intelligence firm Evident, JPMorgan advertised 3,651 AI-related roles globally from February to April. That is almost twice as much as its closest rivals Citigroup and Deutsche Bank.
JPMorgan is developing ChatGPT-like IndexGPT
The company is also developing a ChatGPT-like product called IndexGPT. Last week, the bank filed a trademark application for the finance-themed chatbot. IndexGPT will use generative AI to analyze and select securities tailored to customer needs. JPMorgan is the first financial giant to show its intent to build something like ChatGPT. Trademarks usually take a year to be approved.
Deutsche Bank is combining artificial and human intelligence
Deutsche Bank is using deep learning to understand whether international private banking clients have an interest in particular assets. The AI will suggest suitable funds, bonds, or shares to customers. These suggestions will go through human advisers, who will validate how appropriate they are. The bank aims to combine artificial and human intelligence in its AI quest.
Morgan Stanley is running tests using open-source AI models
Morgan Stanley has asked businesses around the firm to run tests using open-source AI models to understand how AI can be used to enhance its business. The bank has also patented a model that uses AI and deep learning to interpret communications from the Federal Reserve. This will help it understand the direction of the monetary policy.
Societe Generale is using AI to prevent fraud
Wells Fargo is using large language models (LLMs) to determine what information clients should report to regulators. Barclays is studying how AI can be implemented. One of the potential use cases identified by it is the improvement of customer service agents' understanding of client's finance. Meanwhile, Societe Generale is using AI for the prevention of fraud and money laundering.
