AI can be used in ‘every single process’ of JPMorgan’s operations, says CEO

October 2, 2023 Coin Telegraph

JPMorgan’s CEO Jamie Dimon pointed to trading, hedging, research and error detection as just some of the processes that can be streamlined by AI.

JPMorgan CEO Jamie Dimon says artificial intelligence could be applied to “every single process” of his firm’s operations and may replace humans in certain roles.

In an Oct. 2 interview with Bloomberg, Dimon said he expects to see “all different types of models” and tools and technology for AI in the future. “It’s a living, breathing thing, he said, adding:

“But the way to think about for us is every single process, so errors, trading, hedging, research, every app, every database, you can be applying AI.”

“So it might be as a co-pilot, it might be to replace humans … AI is doing all the equity hedging for us for the most part. It’s idea generation, it’s large language models,” he said, adding more generally, it could also impact customer service.

"AI is real"

JPMorgan CEO Jamie Dimon says artificial intelligence will be part of "every single process," adding it's already "doing all the equity hedging for us" https://t.co/EtsTbiME1a pic.twitter.com/J9YD4slOpv
— Bloomberg (@business) October 2, 2023

“We already have thousands of people doing it,” said the JPMorgan CEO about AI research, including some of the “top scientists around the world.”

Asked whether he expects AI will replace some jobs, Dimon said “of course” — but stressed that technology has always done so.

“People need to take a deep breath. Technology has always replaced jobs,” he explained.

“Your children will live to 100 and not have cancer because of technology and literally they'll probably be working three days a week. So technology’s done unbelievable things for mankind.”

However, Dimon acknowledged there are also “negatives” to emerging technologies.

When it comes to AI, Dimon says he’s particularly concerned about “AI being used by bad people to do bad things” — particularly in cyberspace — but is hopeful that legal guardrails will curtail such conduct over time.

Dimon concluded that AI will add “huge value” to the workforce and in the event that the firm replaces its employees with AI, he hopes they will be able to redeploy displaced workers in more suitable work environments.

“We expect to be able to get them a job somewhere local in a different branch or a different function, if we can do that, and we’ll be doing that with any dislocation that takes place as a result of AI.”

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AI unlikely to destroy jobs, but cost to certain workers may be ‘brutal’ — UN study

August 22, 2023 Coin Telegraph

administration

A study from the United Nations agency International Labour Organization suggests AI will more likely augment jobs than destroy them, though certain roles could be at more risk than others.

Generative AI is more likely to complement existing jobs than take over them entirely, though certain roles such as clerical work — could see more of their tasks automated than others.

According to an Aug. 21 Generative AI and Jobs study by the International Labour Organization (ILO) — a United Nations agency — 24% of clerical tasks are considered highly exposed to automation, with an additional 58% with medium-level exposure.

*Tasks with high and medium GPT-exposure by occupational category. Source: ILO*

Typists, travel consultants, bank tellers, contact center clerks, bookkeeping and data entry clerks, hotel receptionists and secretaries are the administration roles most at risk, the figures show.

This, according to the ILO, could suggest that women could be more at risk, given their higher representation in administrative roles.

"3.7 per cent of all female employment in the world is in jobs that are potentially automatable with generative AI technology, compared with only 1.4 per cent of male employment."

Meanwhile, AI automated work is more likely to impact employees in high-income countries (5.5%) compared to low-income countries (0.4%), the report found:

*Occupations with high automation potential by income level and sex. Source: ILO*

The ILO’s study on generative AI mostly focused on the impact of chatbot applications, such as OpenAI’s ChatGPT and Google’s Bard.

Crypto customer service

The ILO report also shows customer service and coordination-related tasks as having high automation potential, along with data management and record keeping, information processing and language services, tasks related to responding to inquiries.

*Table showing tasks with high automation potential clustered into thematic groups. Source: ILO*

Many customer service roles were lost in the most recent crypto winter of 2022, which saw some of the industry’s heavyweights in Binance, Coinbase and Kraken significantly reduce headcounts, including customer service.

Currently, customer service roles in Web3 comprise 832 (2.5%) of the total 33,846 listings on cryptocurrency job board Web3.career.

However, the ILO concluded that the workforce as a whole won't be too affected by AI and that AI’s overall impact were neither particularly positive nor negative for now — rather, its impact will depend on how GPTs are managed and regulated.

"Without proper policies in place, there is a risk that only some of the well-positioned countries and market participants will be able to harness the benefits of the transition, while the costs to affected workers could be brutal," it wrote.

ILO’s findings are more optimistic than that of everyday Americans, with a recent survey revealing that 62% of the U.S. population believe AI will have a major impact in the workplace over the next two decades, leaving many Americans “wary” and “worried” about what their future holds.

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AI automation could take over 50% of today’s work activity by 2045: McKinsey

June 15, 2023 Coin Telegraph

Adoption

Management consulting firm McKinsey & Co believes AI will have the “biggest impact” on high-wage workers.

In just 22 years, generative AI may be able to fully automate half of all work activity conducted today, including tasks related to decision-making, management, and interfacing with stakeholders, according to a new report from McKinsey & Co.

The prediction came from the management consulting firm report on June 14, forecasting 75% of generative AI value creation will come from customer service operations, marketing and sales, software engineering, as well as research and development positions.

What’s the value and impact of #generativeAI? Companies across countless industries are already experimenting with its applications. Our new research has found that the value at stake is huge–potentially $2.6 to $4.4 trillion in #productivity annually➡ https://t.co/pY5ACuvoL1 pic.twitter.com/ecZ0RvtzHl
— McKinsey & Company (@McKinsey) June 14, 2023

The firm explained that recent developments in generative AI has “accelerated” its “midpoint” prediction by nearly a decade from 2053 — its 2016 estimate — to 2045.

McKinsey explained that its broad range of 2030-2060 was made to encompass a range of outcomes — such as the rate at which generative AI is adopted, investment decisions and regulation, among other factors.

Its previous range for 50% of work being automated was 2035-2070.

*McKinsey’s new predicted “midpoint” time at which automation reaches 50% of time on work-related activities has accelerated by eight years to 2045. Source: McKinsey*

The consulting firm said, however, the pace of adoption across the globe will vary considerably from country to country:

“Automation adoption is likely to be faster in developed economies, where higher wages will make it economically feasible sooner.”

*Early and late scenario midpoint times for the United States, Germany, Japan, France, China, Mexico and India. Source: McKinsey.*

Generative AI systems now have the potential to automate work activities that absorb 60-70% of employees’ time today, McKinsey estimated.

Interestingly, the report estimates generative AI will likely have the “biggest impact” on high-wage workers applying a high degree of “expertise” in the form of decision making, management and interfacing with stakeholders.

What will be the impact of generative AI on work, and how much value could it generate?

Explore the full research: https://t.co/A3GOfAGrHC pic.twitter.com/Qed0DhZsyE
— McKinsey Global Institute (@McKinsey_MGI) June 14, 2023

The report also predicts that the generative AI market will add between $2.6 to $4.4 trillion to the world economy annually and be worth a whopping $15.7 trillion by 2030.

This would provide enormous economic value on top of non-generative AI tools in mainstream use today, the firm said:

“That would add 15 to 40 percent to the $11.0 trillion to $17.7 trillion of economic value that we now estimate nongenerative artificial intelligence and analytics could unlock.”

Generative AI systems are capable of producing text, images, audio and videos in response to prompts by receiving input data and learning its patterns. OpenAI’s ChatGPT is the most commonly used generative AI tool today.

McKinsey’s $15.7 trillion prediction by 2030 is more than a three-fold increase in comparison to its $5 trillion prediction for the Metaverse over the same timeframe.

However, the recent growth of generative AI platforms hasn’t come without concerns.

The United Nations recently highlighted “serious and urgent” concerns about generative AI tools producing fake news and information on June 12.

Meta CEO Mark Zuckerberg received a grilling by United States Senators of a “leaked” release of the firm’s AI tool “LLaMA” which the senators claim to be potentially “dangerous” and be possibly used for “criminal tasks.”

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5 ways AI is helping to improve customer service in e-commerce

May 9, 2023 Coin Telegraph

AI is transforming e-commerce customer service through chatbots, personalized recommendations, voice assistants, fraud detection and image recognition.

Artificial intelligence (AI) has revolutionized the e-commerce industry in recent years. One of the most significant ways in which AI is impacting e-commerce is by transforming customer service. AI-powered customer service technologies are becoming more common, and they are helping to improve the customer experience in numerous ways.

This article will discuss how AI improves customer service in e-commerce, with examples of companies using these technologies to their advantage.

Chatbots

AI-driven chatbots are assisting online retailers in offering prompt and effective customer support. Without human assistance, chatbots may provide 24/7 customer service. They can assist clients with information about the products, order tracking, returns and refunds, and other services. For instance, H&M uses a chatbot to assist shoppers in finding products and placing orders on its website.

However, chatbots may not always understand complex customer queries, leading to frustration and dissatisfaction.

Product recommendations

AI is capable of analyzing client data and making tailored product recommendations. E-commerce companies can provide customers with products more likely to be of interest by learning about their preferences and past purchases. For instance, using AI, Amazon suggests products based on a customer’s browsing and purchase history.

The 4 key components of the most successful Amazon product pages are:
1. A personalized shopping experience
How? Get your Web Dev to use Amazon Personalize to deliver personalized recommendations to your customers
…
— Talia Wolf (@TaliaGw) May 3, 2023

Personalized recommendations, however, may be perceived negatively by some customers as intrusive or creepy, which is one of the disadvantages of AI.

Fraud detection

AI can help e-commerce businesses detect and prevent fraudulent activity before it happens. By analyzing patterns of fraudulent behavior, AI can identify potential fraudsters and flag suspicious transactions. For example, PayPal uses AI to detect fraudulent transactions and prevent unauthorized account access.

However, these systems may not always accurately distinguish between legitimate and fraudulent, leading to false positives that can inconvenience and frustrate customers.

Voice assistants

With the rise of voice assistants like Amazon’s Alexa and Google Home, e-commerce businesses can use AI to provide a more seamless customer experience. Customers can use their voices to order products, check order status and get answers to questions. For example, Walmart has integrated its shopping service with Google Home, allowing customers to add items to their cart and place orders using voice commands.

Still, voice assistants might not always understand consumer requests correctly, which could cause annoyance and mistakes during the ordering process.

Image recognition

E-commerce companies can enhance their product search and discovery with AI-powered image recognition. AI can make it easier for buyers to find what they want by examining product photos and recognizing characteristics like color, shape and texture. For instance, Wayfair uses image recognition technology to assist clients in locating furniture and home décor items that complement their tastes and aesthetics.

However, one disadvantage is that image recognition may not always accurately identify products, especially if they are similar in appearance or if the lighting and background in the image are poor. This can lead to frustration and incorrect purchases for the customer.

The future of AI in e-commerce

As e-commerce continues to evolve, AI technology is playing an increasingly important role in the industry. AI is revolutionizing how online retailers conduct business, from personalizing the shopping experience to improving supply chain management. There are several areas where AI is anticipated to significantly affect e-commerce in the future.

Visual search is one such area that enables users to find things by merely submitting a photo. Retailers can use AI to analyze photos and determine product characteristics like color, style and material. Using this technology, a customer’s browsing history can be used to generate product recommendations.

Additionally, it is anticipated that e-commerce will place more emphasis on AI-powered fraud detection. AI can assist merchants in identifying and preventing fraudulent transactions by analyzing trends in client behavior. The risk of stockouts and overstocking can be decreased by using this technology to improve the accuracy of supply chain forecasts and inventory management.

Finally, thanks to its capability to analyze consumer behavior and make real-time price adjustments, AI can assist businesses in optimizing their pricing plans. Additionally, this technology can be used to design customized sales incentives and promotions for specific clients, fostering client loyalty and boosting revenue.

7 potential use cases of chatbots in banking

May 4, 2023 Coin Telegraph

Banking

chatbots can offer a convenient and accessible way for individuals to manage their personal finances, fraud prevention and more.

Chatbots are computer programs that use artificial intelligence (AI) to simulate conversations with users, providing quick and efficient assistance. In the banking industry, chatbots have the potential to revolutionize the way customers interact with their financial institutions.

Here are seven potential use cases of chatbots in banking:

Customer service

Chatbots are increasingly being used in the banking industry to provide efficient and cost-effective customer service. Customers can interact with chatbots to get answers to their banking-related queries and resolve issues related to their accounts, transactions or products. Chatbots can also be programmed to provide personalized responses to customers, enhancing the customer experience.

Chatbots can provide 24/7 customer support, allowing customers to get assistance at any time of the day or night without the need to wait for a customer service representative. This can significantly reduce wait times and improve customer satisfaction.

Furthermore, chatbots can handle multiple queries simultaneously, enabling them to handle a high volume of customer requests efficiently. This can save banks time and money, as fewer customer service representatives may be needed. For instance, the chatbot of Bank of America’s virtual assistant, Erica, can help customers with a range of tasks, such as checking their account balances, making transfers and even disputing charges.

DID YOU KNOW? Bank of America’s voice-activated virtual assistant Erica now has > million users! Financial institutions of all sizes need to make #voicebanking part of their digital strategies. Around 41% of U.S. consumers now own a voice-activated speaker. #fintech #finserv
— ENACOMM (@ENACOMM) December 17, 2019

Personal finance

Chatbots can also be used for personal finance purposes, such as budgeting, financial advice and investment guidance. They can provide personalized recommendations based on a user’s spending habits and financial goals and help users keep track of their expenses and savings. For example, a chatbot could help a user set a budget and remind them when they are approaching their spending limit in a particular category.

Furthermore, chatbots can assist users in finding the best deals on financial products, such as credit cards, loans and insurance policies. They can compare different options and provide recommendations based on the user’s needs and preferences. For instance, Cleo, a chatbot from Cleo AI, can help users track their spending habits and provide suggestions on how to save money.

Loan applications

Chatbots can be used in loan applications to streamline the process and provide 24/7 support to customers. The chatbot can guide users through the application process, answer questions and provide real-time updates on the status of their application. By automating parts of the loan application process, chatbots can help reduce errors and processing times, leading to a faster turnaround time for loan approvals. Chatbots can also assist in collecting necessary documentation and verifying user information.

Additionally, they can use natural language processing (NLP) to assess the creditworthiness of a user and recommend loan options based on their financial situation. For example, HSBC’s Jade chatbot can help customers apply for personal loans and mortgages by providing assistance and collecting necessary information.

Account management

Chatbots can help customers manage their accounts by providing account balance information, setting up automatic payments and updating personal information. For example, Wells Fargo’s chatbot, named Greenhouse, can help customers manage their accounts by providing balance information, setting up payments and even tracking spending patterns.

Fraud prevention

Chatbots can also be utilized in fraud prevention in banking. Fraudulent activities can lead to significant financial losses for both customers and financial institutions. Chatbots can help prevent fraud by monitoring and analyzing customer behavior and transactions in real-time to detect suspicious activity. Chatbots can also be programmed to send alerts to customers in case of unusual activity or suspicious transactions.

Additionally, chatbots can assist customers in reporting fraudulent activity and provide guidance on the next steps to take. With the help of chatbots, banks can improve their fraud prevention strategies and mitigate financial risks. For instance, the chatbot from Mastercard, named Kai, can help identify suspicious activities and alert customers of potential fraud attempts on their accounts.

Mastercard introduces KAI #ChatBots & #millennials are liking the idea of messaging platforms... https://t.co/Q3OlZOYM95 #MastercardEmployee pic.twitter.com/ONjPzAtjno
— Darko Nikolic (@nikolichdarko) November 3, 2016

Investment assistance

Chatbots can provide investment advice and portfolio management recommendations based on customer preferences, risk appetite and investment goals. For example, the chatbot of Wealthfront can provide investment advice and portfolio management recommendations based on customers’ preferences and risk appetite.

Related: A brief history of digital banking

Marketing and sales

Chatbots can promote bank products and services and help customers open new accounts or upgrade their existing ones, providing personalized recommendations based on their needs and financial profiles. For instance, Ally Bank’s chatbot, Ally Assist, can provide personalized recommendations and help customers open new accounts or upgrade their existing ones.

9 examples of artificial intelligence in finance

April 6, 2023 Coin Telegraph

Algorithmic Trading

Discover how artificial intelligence is transforming the financial sector with nine examples of AI in finance.

Artificial Intelligence (AI) is transforming the financial sector, revolutionizing how banks, financial institutions and investors operate. Here are nine examples of AI in finance, and how they are changing the industry:

Fraud detection

AI algorithms can analyze transactions in real time, detect anomalies and patterns that may indicate fraudulent activities, and alert banks to take appropriate actions. An example of fraud detection using AI is PayPal’s fraud detection system. PayPal uses machine learning algorithms and rule-based systems to monitor real-time transactions, and identify potentially fraudulent activities.

The system examines data points like the user’s location, transaction history, and device information to identify abnormalities and patterns that can hint at fraudulent behavior. The technology can notify PayPal’s fraud investigation team about a possibly fraudulent transaction so that they can look into it further or block the transaction. The amount of fraudulent transactions on the network has dramatically decreased thanks to this AI-powered solution, making using PayPal safer and more secure.

Customer service

AI-powered chatbots can provide personalized financial advice, answer customer queries, and automate routine tasks like opening new accounts or updating customer information.

The chatbot “KAI” from Mastercard, which helps clients with account queries, transaction histories and expenditure tracking, is an example of how AI is being used in customer support. KAI uses machine learning algorithms and natural language processing to offer consumers tailored help and financial insights across a variety of channels, including SMS, WhatsApp, and Messenger.

brandchannel: Mastercard Grows Its Brand with New Personal Finance Chatbot KAI https://t.co/Mz3vPoDSJm pic.twitter.com/1zizdGgUac
— Muzaffaruddin Alvi (@Muzaffar69) October 25, 2016

Algorithmic trading

AI can accurately assess past and present market trends, spot patterns, and predict future prices. AI algorithms can also perform transactions in real time, using pre-programmed rules and conditions, optimizing investing strategies and maximizing returns.

Financial institutions and investors benefit significantly from this technology, which enables them to make data-driven decisions and maintain an advantage in the fiercely competitive world of trading.

Risk management

By analyzing complex financial data, artificial intelligence can identify potential risks and forecast future scenarios, providing valuable insights that enable banks and other financial institutions to make well-informed decisions.

An example of risk management using AI is BlackRock’s Aladdin platform. To analyze enormous volumes of financial data, spot risks and opportunities, and give investment managers real-time insights, the Aladdin platform combines AI and machine learning algorithms.

Meet BlackRock’s all-knowing AI, ALLADIN. pic.twitter.com/EBDkaODzHl
— Hum₿le Warrior ⚔️ (@HumbleBitcoiner) August 11, 2022

By examining elements like market volatility, credit risk, and liquidity risk, the platform assists investment managers in monitoring and managing risks. Investment managers may enhance their investment strategies and make data-driven decisions thanks to Aladdin’s risk management capabilities, which lower the risk of losses and boost returns.

Portfolio management

AI can analyze vast amounts of financial data and provide insights into investment trends, risks and opportunities, helping investors make informed decisions. An example of portfolio management using AI is Wealthfront, a robo-advisor that uses AI algorithms to manage investment portfolios for clients.

To create customized investment portfolios for clients based on their goals, risk tolerance, and financial position, Wealthfront combines classic portfolio theory and AI. As market conditions and the client’s goals change, the platform automatically rebalances the portfolio while continuously monitoring its performance. Many investors find Wealthfront an appealing alternative because of its AI-powered portfolio management, which enables customized and optimal investing plans.

Credit scoring

AI algorithms can analyze credit histories, financial statements, and other data to provide accurate credit scores, enabling lenders to make better lending decisions. For instance, ZestFinance’s Zest Automated Machine Learning (ZAML) platform uses AI to analyze credit risk factors and provide more accurate credit scores, improving lending decisions and reducing the risk of default.

Personalized financial advice

AI-powered robo-advisors can provide personalized financial advice and investment strategies based on a client’s financial situation, goals and risk tolerance. For instance, Bank of America’s AI chatbot, Erica, can provide personalized financial advice, answer customer queries and automate routine tasks.

The financial arena is an excellent fit for chatbots and other AI applications. One example: Bank of America’s Erica, a chatbot that provides customer service online by responding to basic inquiries. https://t.co/1uKslUKVJW #nuanceteam pic.twitter.com/U2iyxQHLv2
— Sebastien Le Corff (@twittseblec) April 25, 2018

Insurance underwriting

AI can analyze a range of data points, including demographic information, health records and driving history, to provide accurate insurance underwriting. For instance, to improve accuracy and lower fraud in the insurance market, Lemonade, an AI-powered insurtech company, employs AI algorithms to evaluate claims and underwrite insurance policies.

Regulatory compliance

AI can help financial institutions comply with complex regulations by analyzing transactions, detecting fraud, and ensuring compliance with Know Your Customer and Anti-Money Laundering regulations.

For instance, ComplyAdvantage helps businesses comply with legal obligations and avoid fines by using AI and machine learning algorithms to monitor financial transactions and identify potential money laundering activities.

7 artificial intelligence examples in everyday life

March 23, 2023 Coin Telegraph

AI impacts everyday life: personal assistants, social media, healthcare, autonomous vehicles, smart homes and more!

Artificial intelligence (AI) is becoming increasingly important in our daily lives. AI can automate routine and time-consuming tasks, allowing us to focus on more important activities. In addition, AI algorithms can analyze vast amounts of data to personalize products, services and experiences. Moreover, AI is driving innovation in various industries, such as finance, retail and education.

Here are seven artificial intelligence examples in everyday life.

Personal Assistants

AI-powered personal assistants, such as Siri, Google Assistant and Amazon Alexa, are integrated into smartphones, smart speakers and other devices and can perform a wide range of tasks, from setting reminders and sending messages to playing music and controlling smart home devices.

Social media

Social media sites utilize AI to examine user preferences and behavior, suggest pertinent material, and customize the user experience. Moreover, bogus news, hate speech and other harmful content are found and eliminated thanks to AI systems.

For instance, Meta uses AI to detect and remove fake news and other harmful content. Instagram uses AI to recommend posts and stories based on user behavior. TikTok uses AI to personalize the user experience and recommend videos.

Customer service

Businesses are increasingly using virtual assistants and chatbots powered by AI to offer 24/7 customer service. Natural language processing is used by these chatbots to comprehend consumer questions and deliver relevant responses.

For instance, many companies, such as H&M, use AI-powered chatbots to provide customer support. These chatbots can handle a wide range of queries, such as tracking orders and processing returns.

Healthcare

Applications of artificial intelligence in healthcare include patient monitoring, medication research and medical imaging. Medical picture analysis, anomaly detection and diagnosis support are all capabilities of AI algorithms.

For instance, Merative (formally IBM Watson Health) uses AI to analyze medical images and assist doctors in making diagnoses. The app Ada uses AI to help users identify symptoms and connect with healthcare professionals.

From drug discovery to clinical decision support, AI is transforming the way we approach healthcare. Some of the top AI tools in the market include IBM Watson Health and Google DeepMind Health. #HealthcareAI #AIinMedicine #HealthTech
— Pratap Venkatesan (@twitprattu) March 22, 2023

E-commerce

Customers are given product recommendations by e-commerce sites, such as Amazon, using AI algorithms based on their search queries, browsing histories and other information. Sales are boosted as a result, and customer satisfaction is enhanced.

Autonomous vehicles

AI is used in self-driving cars, trucks and buses to perceive their environment, map out routes and make judgments while driving. It is anticipated that this technology will lessen collisions, gridlock in the streets and pollutants.

For instance, Tesla uses AI to power its self-driving cars, which can navigate roads, highways and parking lots without human intervention.

Smart home devices

Smart home devices such as thermostats, lighting systems and security systems use AI to learn user preferences and adjust settings accordingly. These devices can also be controlled remotely using smartphones or voice commands.

For instance, Philips Hue uses AI to adjust lighting based on user preferences and ambient light levels.

Philips hue makes me so happy. pic.twitter.com/MHqoNvx7AK
— BLAZEAYEEN ️‍ AC 2023 (@BLAZEAYEEN) March 19, 2023

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Customer Service