JPMorgan Reportedly Looking at ChatGPT-like AI Service for Investment Advice

JPMorgan Chase, which is the largest US bank, is reportedly looking to launch a ChatGPT-like AI service for investment advice. Incidentally, the bank is among the companies which have restricted employees from using generative AI platforms like ChatGPT.

CNBC reported that earlier this month, JPMorgan applied to trademark a product named IndexGPT.

The filing stated that IndexGPT would use “cloud computing software using artificial intelligence” for “analyzing and selecting securities tailored to customer needs.”

While other financial companies like Goldman Sachs are already testing generative AI for internal use, JPMorgan might become the first company to roll out the feature for its customers.

I wonder if the advice given by AI will be just as bad as the advice their human advisors have been giving. https://t.co/IJpSaYnQUw

— Peter Schiff (@PeterSchiff) May 25, 2023

Meanwhile, noted financial commentator Peter Schiff took a swipe at the service, wondering whether the advice would be “as bad” as JPMorgan’s human financial advisors.

Washington D.C.-based trademark attorney Josh Gerben told CNBC that “companies like JPMorgan don’t just file trademarks for the fun of it” while adding “This is a real indication they might have a potential product to launch in the near future.”

Notably, AI is finding its way into several financial products and platforms like yPredict to help predict crypto prices.

While financial companies already offer rob advisors, with generative AI the platforms might become even more advanced and sophisticated.

However, while AI-powered investment advice might help lower costs, it might also impact the vast network of financial advisors.

Notably, many fear that AI would lead to widespread job losses – a view echoed by OpenAI CEO Sam Altman. However, AI would also create new jobs, something that Altman also believes.

JPMorgan Is Looking at AI-Powered Investment Advice

Meanwhile, previously also JPMorgan has said that it sees a massive opportunity in AI. At the annual investor day earlier this month, the bank’s Chief Information Officer Lori Beer said, “the third pillar of our strategy is unlocking the power of data and AI.”

She added, “We have made tremendous progress building what we believe is a competitive advantage for JPMorgan Chase.”

Beer said, “We couldn’t discuss AI without mentioning GPT and large language model” while stressing that the bank recognizes “the power and opportunity of these tools.”

She acknowledged that “we have a number of use cases leveraging GPT 4 and other open-source model currently under testing and evaluations.”

ChatGPT Launched Its App in 11 More Countries

AI meanwhile continues to make waves globally and yesterday OpenAI announced that the official ChatGPT app on Apple iOS is available in 11 more countries, which are the UK, France, New Zealand, Albania, Ireland, Croatia, Germany, Jamaica, South Korea, Nigeria, and Nicaragua.

While tech companies are going overboard with their AI investments, regulators are wary of the risks as well – even as most countries are looking to embrace the technology given the impact it can have on productivity.

Goldman Sachs, for instance, believes that AI can increase US productivity by 1.5% annually and can help increase S&P 500 earnings by 30% or more over the next decade.

While ChatGPT is growing fast and became the fastest application ever to hit 100 million users, some tech leaders including Elon Musk are advising caution.

Banks too see AI both as a threat and an opportunity. On the one hand, they are looking to restrict employees from using apps like ChatGPT amid concerns over data privacy, on the other hand, they are also looking at ways to incorporate AI into their products and services.

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