JPMorgan Chase (NYSE: JPM) is developing a new artificial intelligence (AI) investment advisor that could disrupt the financial services industry. CNBC has learned that the company has applied to trademark a product called IndexGPT, which would use AI to select investments for customers.
IndexGPT uses a disruptive form of artificial intelligence called natural language processing (NLP) to select investments for customers. NLP allows the AI to read and understand human language, which means that it can learn about a customer’s investment goals and risk tolerance and then select the best investments to meet those needs.
This is a significant departure from traditional investment advice, which is typically provided by human financial advisors. Human advisors are often expensive and can be difficult to schedule appointments with. IndexGPT, on the other hand, would be available 24/7 and can provide investment advice on demand.
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JPMorgan Chase is not the only company that is developing AI investment advisors. Other major banks, such as Goldman Sachs and Morgan Stanley, are also working on similar products. However, JPMorgan Chase may be the first major bank to release this kind of product directly to its customers.
“This is a real indication they might have a potential product to launch in the near future,” Washington DC-based trademark attorney Josh Gerben told CNBC.
“Companies like JPMorgan don’t just file trademarks for the fun of it,” he continued, noting that the filing includes “a sworn statement from a corporate officer essentially saying, ‘Yes, we plan on using this trademark.’”
The launch of IndexGPT could have a significant impact on the financial services industry. If successful, it could lead to the widespread adoption of AI-powered investment advisors. This could displace many human financial advisors, and could change the way that people invest their money.
Is it going to put financial advisors out in the streets?
Financial advisors have different opinions about AI. Some see it as a threat to their livelihood, while others believe it can be a valuable tool.
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Those who see AI as a threat worry that it will eventually replace human financial advisors. They argue that AI can do everything that a human advisor can do, but for a fraction of the cost. But, they also worry that AI will not be able to provide the same level of personalized attention that human advisors can.
Those who believe AI can be a valuable tool argue that it can help financial advisors to be more efficient and effective. They point out that AI can be used to automate tasks such as research and portfolio management, freeing up advisors to spend more time with clients. They also believe that AI can be used to provide clients with more personalized advice, tailored to their individual needs.
Ultimately, it all remains to be seen. However, it is clear that AI is already having an impact, and it is likely to continue to do so in the years to come.
According to Gerben, JPMorgan must launch IndexGPT within three years of approval to secure the trademark. Trademarks, he said, normally take about a year to get approval due to backlogs at the US Patent and Trademark Office.
Information for this story was found via CNBC, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
