Dow Jones financial heavyweight JPMorgan wants in on the artificial intelligence game that's taking Wall Street by storm. The New York-based bank is developing a ChatGPT-esque software service to provide investment and stock picking advice for customers, CNBC reported late Thursday. JPM shares edged higher premarket Friday following the news.
JPMorgan filed a trademark application for a product called IndexGPT on May 11, according to a bank filing. IndexGPT will utilize "cloud computing software using artificial intelligence" for "analyzing and selecting securities tailored to customer needs," according to the release.
JPMorgan's AI will use a "Generative Pre-trained Transformer" language model. The filing did not specify if the model was the same as the AI model popularized by OpenAI's ChatGPT service.
'Groundbreaking Technology'
In his annual letter to shareholders on April 4, CEO Jamie Dimon called artificial intelligence "an extraordinary and groundbreaking technology," and critical to the company's future success. JPMorgan had more than 300 AI use cases in production at the time for risk, prospecting, marketing, customer experience and fraud prevention. AI also runs through its payments-processing and money-movement systems.
"We're imagining new ways to augment and empower employees with AI through human-centered collaborative tools and workflow," Dimon wrote. He noted JPMorgan leveraged large language models, including ChatGPT.
JPMorgan touts that it invests $12 billion on technology developments annually. In addition, as of April, the bank reported having a 200-person AI research group, 1,000 data management employees and 900 data scientists working on artificial intelligence and machine learning models.
Meanwhile, Goldman Sachs and Morgan Stanley are testing their own internal AI tools to help write code and assist with financial advisor queries.
OpenAI Emerges
Startup OpenAI caused a frenzy last year after launching its ChatGPT artificial intelligence-powered chatbot in November. Microsoft invested billions in OpenAI and has a strategic stake in the company, which was valued between $27 billion and $29 billion following a VC funding round at the end of April.
Across the stock market, chipmakers and AI-related stocks have taken off in the wake of ChatGPT's popularity.
Nvidia rocketed to an all-time high on Thursday. The AI-chip maker beat earnings and predicted sales to spike 64% to $11 billion for the year. That blew out analyst forecasts of $7.2 billion in sales.
Tech giants Amazon.com and Alphabet are also among those pouring money into AI as cloud services revenue slows.
JPM Stock
JPMorgan stock inched up roughly 1% Friday after the AI news. Shares have consolidated over the past three months during the bank panic sparked by SVB Financial's failure. The result has been a cup-with-handle base. Shares have traded mostly below that base's 141.88 buy point for the past five weeks.
You can follow Harrison Miller for more stock news and updates on Twitter @IBD_Harrison
