Wall Street banks are finally embracing artificial intelligence and leveraging its abilities to streamline several banking processes. Deutsche Bank AG is scrutinizing high-net-worth client portfolios with the help of AI, and ING Groep NV is exploring AI capabilities in detecting potential defaults, according to a Bloomberg report from Wednesday. Morgan Stanley is also in the experimental phase, and JPMorgan Chase is recruiting more AI positions than any other bank, advertising 3,651 AI-related roles from February to April, according to Evident data.
Besides banking giants, fintech companies such as Klarna are leveraging AI as well. Klarna offers its employees an account to experiment with this technology. Fintech companies are using AI for several purposes, such as interpreting Federal Reserve communications, helping predict monetary policy shifts, and planning services to help investors with equity selection.
Regulatory compliance has also incorporated AI. Wells Fargo is determining information that clients must report to regulators using large language models, while Societe Generale is utilizing chatbots and AI to prevent fraud and money laundering.
From risk assessment to portfolio management, compliance and fraud detection, AI has become a game-changer, promising to maximize efficiency and accuracy in decision-making. The start of what some describe as an “AI arms race” signifies a change that will reshape the industry in the immediate future.
