JP Morgan Chase has announced that they are developing a form of AI to help select investments for customers, looking to transform the financial advisor business through cutting edge technology.
The technology will aim to fit specific customer profiles with investment decisions with a platform they plan to call IndexGPT. As previously reported by Banking Exchange, ChatGPT is forcing major industries to consider how to use artificial intelligence, and also in the case of financial institutions, how to guard against potential fraud that AI may open up to nefarious players.
Fintech firms are also looking to stay on the cutting edge of AI as this seems to be the next major step in innovation.
Competitors such as Goldman Sachs have already begun initiatives for internal use, but JPMorgan’s filing is the first of this type of initiative targeting direct customer service. Other banks have also used AI to begin to help advisors with decisions.
Based on the fact that JP Morgan Chase has filed a trademark, it is likely that at some point it will actually launch a product specifically for its customers and not just for its financial advisors. The product would likely go well beyond the threats to traditional advisors presently in the market such as robo-advisors.
JP Morgan Chase has recently stated that AI is a central focus for operational efficiency inside the bank, and has more than a thousand employees committed to exploring new technology.