JPMorgan’s AI Cash Flow Model: What It Is and How Can It Work For You
Financial behemoth JPMorgan launched a cash flow intelligence artificial (AI) toll tool last year for its corporate customers. Now, JPMorgan said that this proprietary AI algorithm — which analyzes cash flows and creates a custom forecast in seconds, as announced by the bank — has cut human manual work by 90%, according to Bloomberg.
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“What used to take hours now takes a few minutes,” a video about the tool on GoBankingRates Best Bank’s JPMorgan’s website explained.
The tool — Cash Flow Intelligence — is free and has seen “tremendous” interest from clients, Tony Wimmer, head of data and analytics at JPMorgan’s wholesale payments unit, told Bloomberg. In turn, JPMorgan is now thinking about charging customers in the future, Wimmer said.
“We are going to keep investing into this solution because we see that we’re starting to really crack this workflow,” Wimmer told Bloomberg.
The product was launched one year ago and now has 2,500 clients, according to Bloomberg.
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Phil Siegel, founder of AI nonprofit organization at CAPTRS, said that this was an interesting application of AI, albeit “a bit of a black box.”
“Is the AI pattern recognizing from other clients or is it more learning about specific verticals? Also is the application taking income statement data and generating a cash flow model or from the general ledger?” he said. “In any case, all models like this can both make a worker more productive but also require a human to check the work. Specifics about a company and unique expenditures require people to be involved before approving the output.”
The bank has been very bullish on AI and in his letter to shareholders in April, CEO Jamie Dimon said that the firm will continue to invest in the technology.
“Over time, we anticipate that our use of AI has the potential to augment virtually every job, as well as impact our workforce composition. It may reduce certain job categories or roles, but it may create others as well,” he wrote. “As we have in the past, we will aggressively retrain and redeploy our talent to make sure we are taking care of our employees if they are affected by this trend.”
According to Bloomberg, JPMorgan advertised more than 3,500 AI-related roles between February and April.
While he remains optimistic about AI and deems it “an absolute necessity,” Dimon, in an October TV interview with Bloomberg, also warned against its potential risks.
“Technology has done unbelievable things for mankind but, you know, planes crash, pharmaceuticals get misused — there are negatives,” he told Bloomberg. “This one, the biggest negative in my view is AI being used by bad people to do bad things.”
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This article originally appeared on GOBankingRates.com: JPMorgan’s AI Cash Flow Model: What It Is and How Can It Work For You
