Jamie Dimon Blesses 60,000 Employees (and Investors) With New $JPM AI Tech...

Well, if we’re all indeed screwed as Jamie Dimon says we are,I guess it’s better to have AI during a market crash than not having it. 

In short, JPMorgan Chase is shaking things up in the banking world with its shiny new AI toy: the LLM Suite (with all those over inflated salaries that’s the coolest name they came up with?). This generically named AI wonder is JP Morgan’s “highly advanced” AI assistant that’s set to be rolled out to over 60,000 of its employees. Because, you know, writing emails and reports is dreadful in 2024. 

(Source: Investopedia)

According to Teresa Heitsenrether, JPMorgan’s chief data and analytics officer (who apparently just discovered generative AI herself), the goal here isn't just to make life easier for employees; it’s set to transform the ebb and flow of the banks day to day operations where whipping up a stock analysis report is faster than trying to find a dang parking spot at Costco. 

However, while some may be thinking, “Dude this is just ChatGPT”, the bank isn’t just sticking to one AI model to conquer their most daunting secretarial tasks. No, they’re casting a wide net with OpenAI’s large variety of LLM models to choose from. 

(Source: CNBC)

Heitsenrether mentioned, “Ultimately, we’d like to be able to move pretty fluidly across models depending on the use cases.” Translation: no more putting all their eggs in one AI basket. If one model isn’t cutting it, they’ll just switch to another. No one-trick ponies here, people. 

“So basically they are paying $20 a month for Poe?” - Ladies and Gentlemen, we got ‘em. 

(Source: Giphy) 

Alright, all jokes aside, what's particularly interesting here is that this fallout comes after JPMorgan previously restricted employees from using ChatGPT. In short, the banks executives weren't too hot on sharing their precious data with external providers. 

(Source: Fox Business)

But now, they’re apparently jumping on the bandwagon while keeping their data locked up tighter than a drum. As Heitsenrether put it, “Since our data is a key differentiator, we don’t want it being used to train the model.” Sorry, Zuck. 

(Source: USA Today)

As expected, and absolutely zero percent surprising to pretty much everyone, JPMorgan’s shares responded positively, climbing 0.97% to $206.04 on Friday while closing the week in the green +6.82%. 

But, but, but, with that said though, this move by JP Morgan doesn’t come without its concerns. As we all know, the recent surge in AI has left some worried that we are now entering a realm of reality that follows the storyline of iRobot. 

(Source: Giphy)

With generative AI leading to massive shift in job dynamics, combined with Elon’s visionary prophecy that AI could annihilate us all (still hilarious), Jamie Dimon apparently sees it differently. According to the world’s most powerful bank CEO, AI is paving the way towards what he calls the “Cognitive Revolution,” suggesting it could be as transformative as the internet. 

(Source: CNBC)

However, while this other generic term for AI might empower some workers, it’s no doubt leaving others feeling a bit… displaced. But hey, if it makes Dimon another extra hundred million or so, who TF cares right? May the odds be ever in your favor JP Morgan employees.

(Source: Steemit)

Now, with that said, for us investors, this recent AI news for the bank just adds to the strong sentiment of the company's trajectory. For instance, while the bank missed EPS estimates with only $4.4 for the quarter, Wall Street’s revenue estimates of $42.23 billion were body slammed by JP Morgan’s actual revenue numbers of $50.20 billion.

(Source: Reuters) 

Again, that was pre-LLM Suite, so imagine what a supercharged AI assistant could do for productivity and potential revenue going forward? A few thousand more emails and reports can do wonders I tell ya. 

In addition to the fundamentals, it’s also worth mentioning that in terms of technical analysis, our Stocks.News screener is telling us that the bank’s daily price action is following this same attractive appeal. With 14 out of 17 indicators currently in the “buy” column,...

Combined with 13 of JP Morgan’s moving averages showing an uptrend trajectory, the market is clearly liking the position this stock is headed. 

So given all of this, what’s the takeaway here? 

Well, JPMorgan’s LLM Suite is more than just an email-writing assistant. It’s a glimpse into a future where banks can operate more efficiently, helping employees tackle mundane tasks while freeing them up for more complex work. 

(Source: LinkedIn)

Now like everything we report on here at Stocks.News, only time will tell if the LLM Suite will indeed be the best thing since sliced bread for JP Morgan, or not. But when it comes to the stock in general, don’t sleep on it. 

While this AI news could simply just be more AI fluff and hype, it’s clear that the bandwagon isn’t stopping anytime soon. But even still, it may not be strong enough to keep the market afloat for too much longer… because, you know, according to Jamie Dimon himself, we’ll all be sleeping under a bridge in the near future. 

Stocks.News does not hold positions in any of the companies mentioned in the article.