Dive Brief:
- JPMorgan Chase is rolling out artificial intelligence assistant LLM Suite to 140,000 employees, the bank’s president, Daniel Pinto, said Tuesday during the Barclays Global Financial Services conference.
- As part of the bank’s AI strategy, assessments are also underway to identify how to optimize operational services and “every single process" using AI and large language models, Pinto added.
- The bank expects both initiatives to drive operational efficiencies over the next three to five years, Pinto said. “Either we’ll be able to process a lot more for the same money or spend less,” he said.
Dive Insight:
JPMorgan began ramping up AI projects and related employee training earlier this year. Company executives have emphasized a pragmatic and disciplined approach as the plan has moved forward in concert with the bank's ongoing cloud migration.
“The process of modernization of the technology stack, going to the cloud, going to new data centers, refactoring applications … that agenda requires a lot of work,” Pinto said. “We’ve made a huge amount of progress, but there is still a long way to go.”
In May, Pinto estimated JPMorgan’s AI use cases could deliver up to $1.5 billion in value. On Tuesday, the executive raised that projection closer to $2 billion.
“A lot of that is related to prevention of fraud,” Pinto said. “There are all kinds of benefits, but fraud is a big beneficiary.”
To lead the technology transformation, JPMorgan has adjusted its C-suite. The bank brought Sri Shivananda on board as the firmwide technology chief in June, reporting to CIO Lori Beer. Teresa Heitsenrether was also appointed as chief data and analytics officer in June 2023, tasked with helming AI adoption efforts at the bank.
The banking industry is eager to adopt generative AI and safely capitalize on its potential benefits. Rather than rushing deployments, most organizations are drawing calculated plans to avoid pitfalls.
Like JPMorgan, other banks are focusing on becoming AI-ready. Capital One is leaning on its cloud maturity to scale AI adoption. Bank of America spent $3.8 billion on new technologies last year and is keeping pace this year as it progresses toward its goals of data hygiene for AI. Discover has also taken a measured approach to generative AI, ensuring safeguards are present and training is offered to employees.
