While the world is enamoured by ChatGPT and its human-like responses, JPMorgan will be taking AI to a whole new level by offering artificial intelligence as financial advisor to a select group of its customers.
In the latest finance news that has raised many eyebrows, the giant bank is leveraging the viral success of ChatGPT and using a software that will have the same human-like responses the world has come to be familiar with.
Not The First, But The First
JPMorgan is not the first bank in the world to use AI. Though what can be described as an AI may be questionable for current applications such as market analysis, the application intended by the bank is a finance tech news.
Other banks have already started implanting ChatGPT-like AI services too. The merger of finance and technology is already implemented in Goldman Sachs and Morgan Stanley. These two are already testing human AI responses for internal operations such as building computer codes and algorithms when requested by company engineers and even answer queries.
But if JPMorgan is implementing the rumour, this will be the first known instance of finance technology of such a kind. Instead of using AI internally, the software will be deployed to customers, who will be able to request ideas and opinions on investments and receive responses as if a human advisor is guiding them.
IndexGPT Trademark Filed
Though JPMorgan has not officially made any indication on its intention, the finance technology news stems from its latest filing for a trademark “IndexGPT”.
As per the filing, IndexGPT will be using cloud computing software that will rely on AI that will help in “analyzing and selecting securities tailored to customer needs”.
The application, applied only last month, is still in the processing stage. With a backlog of approvals in the USPTO (United States Patent and Trademark Office), the trademark approval may take up to a year to be granted.
While this means that JPMorgan may or may not deploy its IndexGPT before the trademark approval, it does give the bank enough time to test and fine tune the AI software.
One question that should be raised at this point is will the bank be able to ensure that the AI is good enough. True, a financial advisor – even a human one – is just an advisor and the fine print always has a safety clause of the unpredictable such as market risks and other unforeseen instances that can work against the advice of the finance expert.
Yet, with AI working and crunching numbers faster, there is a debate whether it will be better, or lack the human insight and be too cold and calculated leading to wrong decisions.
Is This the End of Human Advisors?
Technology and finance have a love-hate relationship. The use of computing has helped increase efficiency and speed of financial matters, but for the humans of the industry, there has always been a fear of being replaced.
Most of the fears have been so far unfounded, with technology helping rather than replacing. Today, much of the technology is either taken for granted or not even noticed. Banks like JPMorgan and others have been using basic robotic services and yet, financial advisors have benefited rather than becoming outdated.
Even JPMorgan has more than 1,500 data scientists on its payroll, working towards making customers and the bank happy by finding the right opportunities to invest.
For IndexGPT, this just means that JPMorgan and other banks that will follow suit, will only enjoy more profits as their customers will be given financial advice that will net in wealth.
ChatGPT Fever Rages On
Ever since OpenAI released its ChatGPT software, there has been a fundamental change in the tech world. The software’s ability to respond in a near human-like approach has left the world speechless as even the most experts found ChatGPT’s progress beyond their best estimates.
The arrival of ChatGPT has had a huge impact on all kinds of industries. The AI’s ability to answer queries, offer personal advice, write marketing material and even build code means that all industries and sectors are now embracing the technology at a rapid pace.
Even chipmakers have started to work on processors that are fine-tuned and dedicated for AI, leading to what is termed as a whole new arms race.
Building ChatGPT was no small feat though. With thousands of data entry people at the back who fed answers and taught the software, it has taken an immense amount of data to bring it to the astounding level it is at today.
With the recent release of ChatGPT 4, the AI has become even more powerful.