JPMorgan to Make AI Part of Management Conversation

The importance of artificial intelligence for JPMorgan continues to increase, as evidenced by the statement of the CEO of this financial institution Jamie Dimon that in the structure of the functioning of the bank, advanced technology can get its own reporting line beyond the larger team of specialists of the lender.

JPMorgan to Make AI Part of Management Conversation

Mr. Dimon made the mentioned declaration on Tuesday, March 12 as part of the comments via video feed at the Australian Financial Review business summit in Sydney. He noted that before making decisions about any major investments, it is necessary to initially find out how are affairs with artificial intelligence. In his opinion, this is a necessary action. Separately, Jamie Dimon said artificial intelligence should be made part of the management conversation.

The head of JPMorgan, which is one of the largest players in the American banking sector, noted that in areas such as trading, where $2 trillion worth of securities are in play every day, machine intelligence can become an important tool in equity hedging. Jamie Dimon stated that human eyes and human fingers cannot do the mentioned work fast enough.

It is worth noting that the head of JPMorgan has repeatedly made positive statements regarding the capabilities of artificial intelligence and the prospects for using advanced technology. In the fall of 2023, Jamie Dimon suggested that in the future, large-scale AI implementation could reduce the working week to three and a half days. Also, in his opinion, the use of artificial intelligence can contribute to progress in medical research aimed at achieving the goal of extending life.

JPMorgan sees AI as a critical technology for its future success. This point of view of a financial institution is very progressive and constructive from the point of view of the trend in the development of a global technological reality, in which artificial intelligence is a kind of main driving force. The bank intends to use AI to develop new products, increase the level of customer gain, increase productivity, and more effective risk management.

It is highly likely that shortly, the introduction of artificial intelligence will move from the category of a separate private initiative or experiment into the space of compliance with such a concept as the requirement of the era. Many futurologists predict that AI has the potential to profoundly transform the environment of human civilization in almost all aspects of its liveliness. Against the background of these prospects, the probability of which is high, ignoring the factor of artificial intelligence as a source of impact on many processes in various areas is something like denying reality.

It is worth noting that the large-scale spread of machine intelligence also actualizes the problem of cybersecurity. Fraudsters have access to many advanced technologies, which is why the methodology of their activities becomes more complicated and sophisticated. In this case, the level of consumer awareness is important as a protection factor. For example, an Internet search query such as how to know if my camera is hacked will allow the user to detect signs of unauthorized external access to the personal device.

Returning to the topic of integrating artificial intelligence into JPMorgan’s business structure, it should be noted that the bank already has several hundred scenarios for using advanced technology.

Currently, in the United States, applying AI in the financial sector is becoming more common. Artificial intelligence demonstrates high efficiency in solving tasks related to providing personalized services to customers. More than 80% of financial professionals in the United States said that their companies are ready to use AI. Moreover, three-quarters of firms operating in the relevant area expect significant benefits from generative artificial intelligence.

In the United Kingdom, 60% of financial institutions are ready to add AI to their existing risk management strategies.

At the same time, consumers in the US are very cautious about the prospects of using artificial intelligence. Almost 80% of clients of local financial institutions are concerned about the misinformation that AI can potentially generate.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.