Banking giant JPMorgan Chase (JPM) has a powerful AI tool that’s called LLM Suite. Indeed, this platform connects the bank to leading AI models from Anthropic and OpenAI. Furthermore, it is updated every eight weeks with new information from JPMorgan’s huge databases and software systems, which makes the AI more capable each time. Derek Waldron, the bank’s Chief Analytics Officer, told CNBC that this is part of a much larger plan to transform JPMorgan into a fully AI-powered enterprise, where employees, processes, and customer experiences are improved by artificial intelligence.
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Interestingly, though, Waldron notes that the transformation will take years, as JPMorgan faces a “value gap” between what AI can theoretically do and what it can actually deliver in practice. Unsurprisingly, integrating AI into thousands of different systems across the bank is a huge challenge. Nevertheless, Waldron recently showed CNBC how powerful LLM Suite already is. In fact, in just 30 seconds, the program created a full investment banking presentation, which is a task that usually takes junior bankers hours to complete.
The bank is now planning to use “agentic AI” to handle complex and multistep tasks for employees. As a result, this could mean that fewer entry-level staff are needed as AI does more routine work. However, client-facing employees like relationship managers may become even more valuable as AI takes care of the background tasks. In this future, JPMorgan hopes to give every employee a personal AI assistant and every customer an AI concierge.
Is JPM Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on JPM stock based on 12 Buys, six Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average JPM price target of $319.71 per share implies 2.3% upside potential.
