JPMorgan Chase is reaping rewards in know-your-customer operations from deployment of AI.
The bank processed 155,000 know-your-customer (KYC) files in 2022, using 3,000 people to accomplish the task.
“By the end of next year, we will process 230,000 files with 20% less of the people. It’s an increase in productivity between 80% to 90%,” Chief Operating Officer Daniel Pinto said May 20 during his Investor Day presentation.
While quantifying efficiency gains from AI is a challenge, the $3.7 trillion bank is looking to Chief Analytics and Data Officer Teresa Heitsenrether to spearhead development and deployment of AI throughout JPMorgan’s operations, Pinto said.
Heithsenrether will be tasked with transforming “the data that we have together with the business into something that is usable,” Pinto said.
Most recently, JPMorgan’s investment in AI and large language models has added efficiency in:
- Fraud detection;
- Customer personalization;
- Training; and
- Operational management.
The bank is also prioritizing the use of AI for training purposes, Mary Erdoes, chief executive of the bank’s asset and wealth management business, said during Investor Day, noting, all new hires will get training for AI.
Through AI, “the idea is to look at everything and see how much productivity there is,” Pinto said.
