(Bloomberg) -- JPMorgan Chase & Co. said artificial intelligence tools are starting to generate revenue for the bank, with future advances in AI likely to produce even more benefits.
“In addition to efficiency and potential cost avoidance, we are seeing revenue-generating activity, and that’s really encouraging,” Teresa Heitsenrether, the bank’s chief data and analytics officer, said at the Evident AI Symposium on Wednesday.
JPMorgan set a target last year of $1 billion in “business value” generated by AI in 2023, and the firm increased that goal to $1.5 billion at its investor day in May. The gains come from benefits including personalized recommendations to clients in the card businesses and providing insights to client-coverage teams, according to Heitsenrether.
The world’s biggest banks have been experimenting more with artificial intelligence in recent months, spurred by the promise that it will help them boost staffers’ productivity and cut costs. JPMorgan has thousands of open roles tied to artificial intelligence, and Chief Executive Officer Jamie Dimon has said the technology could eventually allow employers to shrink the workweek to just 3.5 days.
Read More: Wall Street Fights for AI Talent as Banks Raid From Rivals
Heitsenrether has been in her role for six months, taking on new responsibilities after Dimon made AI technology a priority at the bank.
The release of ChatGPT a year ago prompted banks to hire for AI-related positions and begin testing uses for generative AI, which can summarize documents, write emails and churn out clever responses to users. Dimon called AI “extraordinary and groundbreaking“ in his annual shareholder letter, and said it could be integrated into “every single process“ of the firm’s operations.
The bank sees “tremendous potential” for the use of generative AI to service clients in a secure way, Heitsenrether said. “We have hundreds of use cases in progress at the moment, some of which are somewhat close to coming to fruition.”
Still Heitsenrether acknowledges the risks associated with the emerging technology.
“Its about making sure we are staying safe, well controlled, and focusing on the things that add the impact we hope to have,” she said. It also has the potential for significant dislocation of talent. Technological innovation is normal, and the industry will adjust, Heitsenrether said.
JPMorgan is using AI to augment work done by humans, rather than seeing it as a way to replace them, Heitsenrether said. The bank can continue to grow using AI without necessarily increasing headcount to support that growth, she said. Still, it’s focused on attracting talent across the globe.
“There is a keen desire to be competitive here, to be on the forefront,” she said.
--With assistance from Hannah Levitt.
©2023 Bloomberg L.P.