JPMorgan Chase is reportedly making a significant stride towards AI-driven financial services by developing an artificial intelligence software service offering customers investment advice. According to a report by CNBC, the new service, dubbed IndexGPT, draws inspiration from OpenAI’s ChatGPT technology, which employs large language models to generate human-like text based on input queries.
CNBC says that the banking behemoth, headquartered in New York, has recently filed for a trademark for IndexGPT, signaling its commitment to this innovative venture. As per the trademark application, IndexGPT will leverage “cloud computing software using artificial intelligence” to analyze and select securities that best meet customer requirements.
The CNBC article notes that although banks such as Goldman Sachs and Morgan Stanley have begun experimenting with the technology for internal use in the financial sector, JPMorgan Chase could be the first traditional financial institution to offer a GPT-like product directly to its customers.
Josh Gerben, a trademark attorney based in Washington D.C., told CNBC that the trademark application indicates JPMorgan’s intention to launch the product in the near future. The bank will need to launch IndexGPT within approximately three years of approval to secure the trademark.
The IndexGPT service is expected to employ Generative Pre-trained Transformer (GPT) models, the same type of AI ChatGPT uses. This move by JPMorgan Chase could mark a potential shift in the financial advisory landscape, with AI-powered services potentially challenging the role of traditional financial advisors.
The report also mentions that despite the development of simple roboadvisor services by wealth management firms, human advisors have continued to gather billions of dollars in assets, but the introduction of AI-powered services like IndexGPT could potentially disrupt this trend.
Finally, CNBC says that JPMorgan Chase, which employs 1,500 data scientists and machine-learning engineers, is exploring various use cases for GPT technology. The bank’s global tech chief, Lori Beer, apparently emphasized the power and potential of these tools at the company’s annual investor conference earlier this week.
