This semi-monthly column by highlights news, government documents, NGO/IGO papers, industry white papers and reports, academic papers and speeches on the subject of AI’s fast paced impact on the banking and finance sectors. The chronological links provided are to the primary sources, and as available, indicate links to alternate free versions.

NEWS:

Forbes, July 31, 2024. How Banks Can Combat Fraud, Cybercrime With Advanced Technology, AI. Fraud prevention is the top priority of financial institutions in the next year. Today, they increasingly recognize it as central to the customer experience, as well.Fraudsters are smart professionals or organizations that deeply understand the vulnerabilities across the banking ecosystem and apply advanced technology and AI to commit financial crimes. Here are five things banks can do to prevent fraud and, ultimately, improve the customer experience…

Financial Times, July 30, 2024.[unpaywalled] JPMorgan Chase has begun rolling out a generative artificial intelligence product, telling employees that its own version of OpenAI’s ChatGPT can do the work of a research analyst. The US bank has given employees of its asset and wealth management division access to a large language model platform which the bank is calling LLM Suite, according to an internal memo seen by the Financial Times. Executives told staff LLM Suite can help them with writing, idea generation and summarising documents through access to third-party models. “Think of LLM Suite as a research analyst that can offer information, solutions and advice on a topic,” the memo told employees. It was signed by Mary Erdoes, head of JPMorgan’s asset and wealth management business in the memo, Teresa Heitsenrether, the bank’s chief data and analytics officer, and Mike Urciuoli, the asset and wealth management unit’s chief information officer. They described it as a “ChatGPT-like product” that was to be used for “general purpose productivity” to complement its other apps that handle sensitive financial information called Connect Coach and SpectrumGPT. JPMorgan started introducing LLM Suite to pockets of the bank earlier this year and about 50,000 employees, or roughly 15 per cent of its staff, now have access to it, said a person familiar with the matter. The company does not disclose how many research analysts it employs.

Forbes, July 30, 2024. JPMorgan Chase Leads AI Revolution In Finance With Launch Of LLM Suite. As the financial sector starts to embrace artificial intelligence, JPMorgan Chase has taken a significant step forward with the launch of the LLM Suite. According to an internal memo obtained by the Financial Times, the world’s largest bank by market capitalization is launching a generative AI-based tool for its workers. This generative AI tool is designed to serve as a ‘research analyst’ for over 50,000 employees, aiding in various tasks that enhance productivity and decision-making within the firm. The LLM Suite stands out for its ability to generate and refine written documents, provide creative solutions and summarize extensive documents, thus streamlining the information flow within the company. These capabilities not only save time but also improve the quality of output, making the tool invaluable for employees across different departments. The LLM Suite boasts several key features that make it an indispensable tool for employees.

Econotimes, July 28, 2024. JPMorgan Deploys AI Chatbot to Transform Banking Analyst Roles Amid Automation Fears – JPMorgan Chase has rolled out its AI chatbot, LLM Suite, to employees, aiming to enhance productivity in tasks like data analysis and document summarization. The move highlights the growing impact of AI on banking roles, sparking excitement and concern over potential job losses. JPMorgan’s AI Chatbot LLM Suite Set to Revolutionize Banking Analyst Roles, Sparking Automation Concerns. AI has the potential to significantly alter the roles of banking analysts and equity researchers shortly, potentially rendering the finance industry more akin to the CIA. According to a report in the Financial Times, JPMorgan Chase, the world’s largest bank by market capitalization, has initiated the distribution of its internal chatbot, LLM Suite, to its employees. An email sent by the bank encouraged them to utilize it for “writing, generating ideas, solving problems using Excel, and summarizing documents,” among other purposes.

Bloomberg Law [paywalled], July 24, 2024. House Dems Eye How AI Bias in Housing, Banking Hurts Consumers. Democrats honed in on the risk of discrimination by AI tools at a House Financial Services hearing Tuesday, quizzing witnesses about how to protect consumers in the financial and housing industries. Ranking member Maxine Waters (D-Calif.) said she wanted to make sure that AI tools are developed with the best interest of the consumer in mind, pointing out that people of color looking for mortgage loans “have been denied or overcharged significantly as a result of discriminatory algorithms.” “As companies forge ahead with AI, it’s more important than ever that this committee and Congress not only continue this kind of …

Bloomberg Law [paywalled], July 23, 2024. House Dems Eye How AI Bias in Housing, Banking Hurts Consumers. Democrats honed in on the risk of discrimination by AI tools at a House Financial Services hearing Tuesday, quizzing witnesses about how to protect consumers in the financial and housing industries. Ranking member Maxine Waters (D-Calif.) said she wanted to make sure that AI tools are developed with the best interest of the consumer in mind, pointing out that people of color looking for mortgage loans “have been denied or overcharged significantly as a result of discriminatory algorithms.”“As companies forge ahead with AI, it’s more important than ever that this committee and Congress not only continue this kind of …

VentureBeat, July 2, 2024. Gen AI takes over finance: The leading applications and their challenges. The impact of generative AI on the finance industry is a topic of intense debate among experts. Major financial institutions are rapidly integrating generative AI into their operations. Goldman Sachs has deployed its first generative AI tool across the firm, focusing on market analysis and creating a copilot assistant for investment bankers. JP Morgan has implemented AI in its fraud detection systems, while Bank of America and Capital One are using AI-powered chatbots to revolutionize customer service. Ally Financial has identified more than 450 use cases for generative AI, with applications ranging from transcribing and summarizing contact center calls to recapping earnings reports and conference call transcripts. Includes a chart on High AI Impact Industries and Jobs.