This Wall Street Giant Is Leaning on AI for Financial Advice
This AI chatbot augments – but doesn’t yet replace - human money managers.
Financial consumers who’ve long been accustomed to getting advice from money managers may soon be getting some of that Wall Street know-how from AI chatbots.
That’s the takeaway from a new JPMorgan Chase announcement on a new stock trading advisory chatbot in May.
The AI bot, called IndexGPT, was introduced in a U.S. Patent and Trademark filing on May 11 by the investment banking firm.
(The product) "provides temporary use of online non-downloadable cloud computing software using artificial intelligence for use in computer software selection of financial securities and financial assets,” the patent file noted.
The patent also covers:
· Software as a service (SAAS) services featuring software using artificial intelligence for Generative Pre-trained Transformer models in the field of financial services.
· Provides consumer product information for the purpose of selecting artificial intelligence (AI) hardware and software to meet the consumer's specifications; software as a service (SAAS) services featuring software for analyzing and selecting securities tailored to customer needs.
First reported by CNBC, the JPMorgan Index GPT is the first shot across the bow at human financial advisors. While the Chatbot version trademarked by JPMorgan Chase doesn’t infer it will displace actual money managers, industry experts say it’s only a matter of time.
“It’s an A.I. program to select financial securities,” trademark attorney Josh Gerben told CNBC. “This sounds to me like they’re trying to put my financial advisor out of business.”
The patent filing doesn’t get too specific, but it appears that JP Morgan wants to use IndexGPT to choose stocks, bonds, and funds for its wealth management clients.
“This is a real indication they might have a potential product to launch in the near future,” Gerben said. “Companies like JPMorgan don’t just file trademarks for the fun of it.”
The move also signals an aggressive move by JP Morgan into the artificial intelligence market.
"AI and the raw material that feeds it, data, will be critical to our company’s future success," JPMorgan Chase CEO Jamie Dimon stated in a note to shareholders last month. "The importance of implementing new technologies simply cannot be overstated."
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