JPMorgan jumps into AI craze with robot stock picker

Dow Jones financial heavyweight JPMorgan wants to join the artificial intelligence game that is taking Wall Street by storm. The New York-based bank is developing a ChatGPT-like software service to provide investment and stock-picking advice to clients, CNBC reported Thursday evening. Shares of JPM rose slightly pre-market on Friday following the news.


JP Morgan (JPM) filed a trademark application for a product called IndexGPT on May 11, according to a bank filing. IndexGPT will use “cloud computing software using artificial intelligence” to “analyze and select securities tailored to client needs,” according to the statement.

JPMorgan’s AI will use a “Generative Pre-trained Transformer” language model. The filing did not say whether the model was the same as the AI ​​model popularized by OpenAI’s ChatGPT service.

“Revolutionary Technology”

In his April 4 annual letter to shareholders, CEO Jamie Dimon called artificial intelligence “an extraordinary and game-changing technology” and essential 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 manages its payment processing and money movement systems.

“We envision new ways to augment and empower employees with AI through collaborative tools and human-centric workflow,” Dimon wrote. He noted that JPMorgan has leveraged large language models, including ChatGPT.

JPMorgan announces that it invests 12 billion dollars each year in technological developments. Additionally, in April, the bank said it had a 200-person AI research group, 1,000 data management staff and 900 data scientists working on artificial intelligence and machine learning models.

In the meantime, Goldman Sachs (GS) and Morgan Stanley (MS) are testing their own internal AI tools to help write code and answer questions from financial advisors.

OpenAI emerges

Startup OpenAI caused a frenzy last year after launching its artificial intelligence-based ChatGPT chatbot in November. Microsoft (MSFT) has invested billions in OpenAI and has a strategic stake in the company, which was valued at $27 billion to $29 billion following a venture capital funding round in late April.

Across the broader stock market, chipmakers and AI-related stocks took off in the wake of ChatGPT’s popularity.

Nvidia (NVDA) hit an all-time high on Thursday. The AI ​​chipmaker beat its earnings and predicted sales would climb 64% to $11 billion for the year. That blew analysts’ forecast of $7.2 billion in sales.

Tech Giants (AMZN) and Alphabet (GOOGL) are also among those pumping money into AI as revenue from cloud services slows.

JPM Stock

JPMorgan stock rose about 1% on Friday after the AI ​​news. Stocks have consolidated over the past three months during the bank run triggered by the bankruptcy of SVB Financial. The result was a cup base with handle. The shares have traded mostly below the 141.88 buy point of this basis for the past five weeks.

You can follow Harrison Miller for more stock info and updates on Twitter. @IBD_Harrison


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