From wealthy portfolio management to potential default risks, banks such as Morgan Stanley and JP Morgan are not only leveraging AI but are looking to fill roles related to AI even while announcing layoffs in certain divisions.
According to data, more than a third of all job openings on Wall Street are for AI related positions. While JP Morgan is leading the way, global banks such as ING, Deutsche Bank and Citigroup are showing an increase in staff related to AI, proving that it is a global focus across the industry. The positions are for high paying jobs with a fight for talent just beginning to take place.
Most of the banks’ spokespeople claim that the technology will be utilized in balance with humans in areas such as wealth management and even institutional trading, but complex analysis of risk modeling will likely be replace some jobs by innovative technology.
Bank of America Chief Brian Moynihan even said that AI could have “extreme benefits and reduce headcount”. Banking is an industry that leverages specific data across different divisions from investment banking to lending risk.
Banking Exchange reported earlier this week that JP Morgan has filed a patent for a service similar to ChatGPT that will help investors pick investment options. Wells Fargo has reported that it has built a chatbot-based customer assistant using an AI platform called Dialoguflow.
Most analysts believe that the banking industry will be transformed by AI, but the question that is being asked is how long will it take and how fast should the technology be adopted.
The short term consensus seems to be to match the technology with human analysis as the banking industry struggles through how quickly to scale its reliance on AI.