JPMorgan reportedly plans to develop a robot to execute stock trades, essentially replacing the human touch in the process.
The bank made the move after a European trial of its new artificial intelligence (AI) program showed it was much more efficient than traditional methods of buying and selling, the Financial Times reported.
Daniel Ciment, JPMorgan’s head of global equities electronic trading, told the Financial Times that the AI — known as LOXM — has been used in the bank’s European equities algorithms business since the first quarter and will be launched across Asia and the U.S. by year’s end.
LOXM’s job is to “execute client orders with maximum speed at the best price, by using lessons it has learnt from billions of past trades — both real and simulated — to tackle problems such as how best to offload big equity stakes without moving market prices,” the Times reported.
“Such customisation was previously implemented by humans, but now the AI machine is able to do it on a much larger and more efficient scale,” said David Fellah, of JPMorgan’s European Equity Quant Research team.
Investment banks have been trying to use AI, automation and robotics to help cut costs and eliminate time-consuming, the Times explained.
After blazing a trail in online and digital banking, Sweden’s financial industry is now emerging as a pioneer in the use of artificial intelligence, Bloomberg reported.
SEB AB, one of Sweden’s biggest banks, is rolling out Aida, a virtual customer-service representative. The goal is to give the actual humans more time to engage in more complex tasks.
There also is Nova, which is a chatbot Nordea Bank AB is introducing at its life and pensions unit in Norway.
Swedbank AB is adding to the skills of its virtual assistant, Nina.
All three are designed to sound like women, based on research suggesting customers feel more comfortable with female voices.
“There are some frequent, simple tasks that we need to deal with manually today, and in that effort we’re looking into AI to see how we can deploy it, and Aida is one,” Johan Torgeby, the chief executive officer of SEB, said in an interview.
Chatbots have access to vast amounts of individual client data, meaning they can quickly handle straightforward customer requests. That in turn frees up human employees to deal with more complex services, like coming up with the best mortgage plan to suit a specific customer.
(Newsmax wires services contributed to this report).
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