JPMorgan Chase is reportedly working with American regulators as it prepares its inaugural AI projects.
The country’s largest bank wants to make sure proper controls are in place as it tries to get ahead of its competitors in launching artificial intelligence (AI) offerings, Lori Beer, the company’s chief information officer, said in an interview with Bloomberg News Thursday (Nov. 9).
“It’s about helping regulators understand how we build the generative AI models, how we control them, what are the new vectors of risk,” Beer said. “It’s not only what we need to think about, but what they should think about,” she said, adding that early engagement is crucial. “As we learn, we share those learnings.”
While many banks have been hiring AI experts and testing generative AI applications in the wake of ChatGPT’s arrival last year, JPMorgan is moving faster than most lenders, the Bloomberg report said.
Beer told the news outlet her bank is testing AI applications that can generate earnings summaries for every company that the bank monitors. It is also working on a help desk that offers precise steps to solve customer problems, instead of links to related articles.
Bloomberg noted that JPMorgan CEO Jamie Dimon had called AI “extraordinary and groundbreaking” in his yearly shareholder letter, and said it could be woven into “every single process” of the bank’s operations.
Beyond the world of JPMorgan, Dimon has predicted that AI will usher in a 3½-day workweek and help fuel advancements in healthcare, potentially bringing about longer lifespans and a reduced risk of diseases like cancer.
Another banking giant, Citigroup, has reportedly seen its employees pitch 350 possible applications for generative AI within the company. For example, Citigroup’s risk and compliance team have used generative AI to analyze and assess the impact of new capital rules issued by federal regulators.
PYMNTS examined the use of AI in the banking sector earlier this year in the report “AI and Banking’s New Dawn: From Conversations to Conversions.”
“Going well beyond simple greetings and information fetching, today’s banking AI chatbots are shaping up to be tomorrow’s financial advisers,” that report said.
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