Mentions of AI and related terms on earnings calls hit a record high among the 10 largest US banks in Q1’24.
JPMorgan, the largest US bank, is going full speed ahead.
Earnings insights — your new genAI shortcut to analyzing earnings calls on CB Insights — highlight how JPMorgan is making AI a bigger strategic priority per its Q4’23 earnings call.
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Its stock sank 6.5% on Friday after reporting lower net interest income and guidance, despite beating revenue and earnings expectations. (Earnings insights & the full call transcript are available on the CBI platform here.)
Still, JPMorgan and other banks are viewing generative AI as an operational silver bullet.
CEO Jamie Dimon in his annual letter released this month said, “We're also exploring the potential that generative AI (GenAI) can unlock across a range of domains, most notably in software engineering, customer service and operations, as well as in general employee productivity.”
On a recent earnings call, Wells Fargo CEO Charles Scharf reported the bank had over 20M consumer interactions with its AI assistant.
Bank of America CEO Brian Moynihan noted the bank could hire less if it sees efficiencies with AI.
Of course, some banks are more prepared for the AI boom than others.
Capital One, for example, hired Abhijit Bose, a head of engineering at Facebook AI Research, to lead its enterprise machine learning department.
JPMorgan has applied for 10 patents per CB Insights patent search since 2021 relating to federated learning — a privacy-preserving and decentralized AI training method.
While some banks are doubling down on internal R&D, others are investing & partnering for growth, linking up with AI chatbot developers.
Companies like Kasisto, Kore.ai, and Aisera all have banking investors and clients.
Despite the rising activity, banks still have to overcome significant challenges to realize AI’s potential — including data privacy issues, talent recruitment, and budget concerns.
But the race is on to benefit from AI before rivals do.
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