JPMorgan Chase News

• Blockchain Council
• September 02, 2024

JPMorgan Mandates AI Training for Every New Employee

JPMorgan Chase is making artificial intelligence (AI) training a mandatory part of the onboarding process for all new employees. This move is part of the bank’s strategy to solidify its position as a leader in AI technology.

Mary Erdoes, who leads the asset and wealth management division, highlighted the initiative during the bank’s investor day. She emphasized that every new hire will receive prompt engineering training to prepare them for the evolving AI landscape. This training aims to ensure that employees are equipped with the skills necessary to navigate and utilize AI tools effectively.

Company president Daniel Pinto underscored the significant impact AI is expected to have on the bank’s workforce, which includes 60,000 developers and 80,000 operations and call-center staff. Pinto described AI’s potential influence as “very, very” substantial, predicting that it could transform various aspects of their work. The bank values its AI use cases at an estimated $1 billion to $1.5 billion, indicating the significant financial stakes involved.

In his recent letter to shareholders, CEO Jamie Dimon drew historical parallels, comparing the arrival of AI to revolutionary inventions like the printing press and the steam engine. Dimon expressed confidence that AI would have transformative effects on the bank’s operations, augmenting nearly every job. He noted that while AI might lead to changes in job categories, it also has the potential to create new roles.

JPMorgan’s commitment to AI is evident in its robust investment in talent and research. The bank employs over 2,000 AI and machine learning experts and data scientists, contributing to more than 400 AI use cases across various departments such as marketing, fraud detection, and risk management. These efforts are part of the bank’s broader strategy to integrate AI into its core operations and improve efficiency.

Recently, JPMorgan announced its use of OpenAI’s GPT-4 model for thematic investment baskets. This model leverages natural language processing to scan news articles and identify companies related to specific investment themes. This application of AI reflects the bank’s innovative approach to integrating advanced technologies into its financial services.

A study by Evident highlighted JPMorgan’s increasing share of AI research output, which grew from 30% in 2018 to 45% in 2023. This growth is a testament to the bank’s heavy investment in AI talent. The study also revealed that JPMorgan employs more AI researchers than any other bank, with a talent pool more than four times larger than its closest competitor, the Royal Bank of Canada.

Erdoes explained that AI is streamlining various tasks within the bank, allowing bankers to retrieve information on potential investments more quickly and efficiently. This technological assistance saves analysts significant time each day, enhancing productivity and decision-making capabilities. The bank has also introduced a large language model named ChatCFO, designed to support its finance team.

Dimon, in his letter, highlighted the bank’s expanding AI organization, which has grown substantially over the past year. The integration of predictive AI and machine learning into areas like marketing and fraud detection has already shown promising results. The bank is now exploring generative AI for software engineering, customer service, and operations.