JPMorgan to develop AI-driven investment advice service
JPMorgan Chase has applied to trademark a product called IndexGPT that will use artificial intelligence towards selecting investments for customers.
As reported by CNBC, the product would use “cloud computing software using artificial intelligence” for “analysing and selecting securities tailored to customer needs” according to a US Patent and Trademark Office filing.
Already, the firm had over 1,000 people involved in data management, more than 900 data scientists (AI and machine learning experts), a 200-person AI research group, and 600 machine learning engineers (who write the code to put models in production) in its staff.
Explaining the firm’s embrace of new technology, chief executive, Jamie Dimon, believed it would be “critical” to the company’s future success.
“We already have more than 300 AI use cases in production today for risk, prospecting, marketing, customer experience and fraud prevention, and AI runs throughout our payments processing and money movement systems across the globe,” said Dimon in his letter to shareholders in the JPMorgan Chase & Co. 2022 annual report.
“AI has already added significant value to our company. For example, in the last few years, AI has helped us to significantly decrease risk in our retail business (by reducing fraud and illicit activity) and improve trading optimisation and portfolio construction (by providing optimal execution strategies, automating forecasting and analytics, and improving client intelligence)”.
If the patent were to go through, IndexGPT intended to provide “temporary use of online non-downloadable cloud computing software using artificial intelligence for use in computer software selection of financial securities and financial assets,” as per the patent filing.
JP Morgan had already spent over $2 billion building new, cloud-based data centres and migrated some 38 per cent of its applications to the cloud.
The development of IndexGPT would follow the trend of a number of major banks around the world using AI technology for a range of possible uses.
In March, Morgan Stanley Wealth Management (MSWM) announced a partnership with OpenAI towards developing a bespoke internal service that would leverage OpenAI technology and the wealth management division’s intellectual capital to deliver insights to its advisers.
AUTHOR
Rhea Nath
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