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As artificial intelligence (AI) begins to find its way into the workflows and verticals in businesses ranging from corporations to mom-and-pop shops, Wall Street’s biggest banks are choosing to not get left behind.
What Happened: Banks such as Deutsche Bank AG DB are leveraging AI to scrutinize high net worth client portfolios, while ING Groep NV ING is using it for potential default detection, a Bloomberg report from Wednesday said.
Morgan Stanley MS is in the experimental phase, exploring AI capabilities in a secure, controlled setting.
JPMorgan Chase & Co. JPM is taking the lead, recruiting for more AI positions than any other bank; it advertised 3,651 AI-related roles from February through April, Bloomberg said, citing data from Evident.
Read Also: Will JPMorgan CEO Jamie Dimon Run For President? Hedge Funder Bill Ackman Gives His Nod
In an “AI arms race,” as Evident’s CEO Alexandra Mousavizadeh described, deep value lies in the potential for AI to enhance efficiency in mundane tasks, streamline complex analysis and expedite risk modeling.
Deutsche is already implementing deep learning to assess if private banking clients are overinvested in specific assets and match them with appropriate financial products.
AI integration isn’t limited to traditional banks, or banks at all for that matter. Fintech companies are leveraging AI, with Klarna offering its employees a ChatGPT-4 account to experiment with the tech.
Morgan Stanley uses AI to interpret Federal Reserve communications, helping predict monetary policy shifts, the report said. Similarly, JPMorgan is planning a ChatGPT-like service to assist investors with equity selection.
AI is also integrating with regulatory compliance. Wells Fargo & Co WFC uses large language models to determine what information clients must report to regulators, and Societe Generale SA SCGLY is using chatbots and AI to detect and prevent fraud and money laundering.
From risk assessment to portfolio management, compliance and fraud detection, AI is emerging as a game-changer, promising to boost efficiency and accuracy in decision-making. The start of what some describe as an “AI arms race” signals a change that’s likely to reshape the industry in the near future.
Read Next: AI Vs. Wall Street: Week 3 Results Of The Benzinga ChatGPT Investment Challenge
Photo: Shutterstock
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