JPMorgan Chase is currently in the process of developing a software service that shares similarities with ChatGPT, utilizing a disruptive form of artificial intelligence to assist in the selection of investments for its customers, according to information obtained by Trade Algo.
The New York-based bank recently filed a trademark application for a product called IndexGPT. The filing reveals that IndexGPT will leverage "cloud computing software using artificial intelligence" to analyze and choose securities tailored to meet the specific needs of customers.
The immense success of OpenAI's ChatGPT technology in the past year has compelled entire industries to confront the advent of artificial intelligence. ChatGPT, which employs extensive language models to generate responses resembling human speech, has incited a competitive race among major technology companies and chipmakers, as they recognize its potential as a foundational innovation.
The applications of this technology in the field of finance are vast. Banks such as Goldman Sachs and Morgan Stanley have already initiated internal testing, exploring ways in which it can aid Goldman engineers in coding or providing solutions to queries raised by Morgan Stanley financial advisors.
JPMorgan, however, maybe the first significant financial institution endeavoring to introduce a GPT-like product directly to its customers, as suggested by Washington D.C.-based trademark attorney Josh Gerben. Gerben states, "This is a genuine indication that they may have an upcoming product to launch in the near future."
Gerben further emphasizes that companies like JPMorgan do not file trademarks arbitrarily. The filing includes a sworn statement from a corporate officer affirming their intention to utilize the trademark. According to the lawyer, JPMorgan must launch IndexGPT within approximately three years of trademark approval in order to secure the rights. Trademarks typically take nearly a year to be approved due to the backlogs at the U.S. Patent and Trademark Office.
Although trademark applications are usually drafted with broad language to provide companies with extensive protections, JPMorgan's filing specifically indicates that IndexGPT will utilize the same flavor of AI popularized by ChatGPT. The bank plans to employ AI powered by "Generative Pre-trained Transformer (GPT) models."
Gerben expresses his concern, stating, "It's an AI program to select financial securities. This sounds to me like they're trying to put my financial advisor out of business." JPMorgan declined to comment on the matter.
Financial advisors have long apprehended the arrival of technology that could potentially replace their roles in the market. However, these fears have yet to materialize. Wealth management firms, including Morgan Stanley and Bank of America's Merrill, offer simplified Robo-advisor services, but this has not hindered their human advisors from amassing billions of dollars in assets.
During JPMorgan's recent annual investor conference, company executives highlighted the progress they have made in implementing AI across their operations. The bank, which employs 1,500 data scientists and machine-learning engineers, is actively exploring various use cases for GPT technology, as stated by global tech chief Lori Beer.
Beer affirms, "We couldn't discuss AI without mentioning GPT and large language models. We have recognized the power and potential of these tools and remain committed to exploring all the ways in which they can deliver value to the firm."
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