JPMorgan: Top 20 Emerging Technologies For Banks
AI will change everything, and that isn't hype.
JP Morgan’s (JPM) list of 19 emerging technologies warns other banks that AI is really going to change everything. It’s not just hype.
This is a follow-up to yesterday’s WEF report on 10 emerging technologies, with this report focused solely on emerging tech for banks and finance!
JPM is simply the best tech user within financial services, and where they go, others will follow.
While JPM is focusing on tech like quantum computing, bring-your-own cloud, and tokenization, it is AI that is the show-stopper in this report. Of the 19 technologies, more than half are AI-based!
👉TAKEAWAYS
A limited selection of emerging techs that piqued my interest.
🔹Quantum Computing:
Finance is among the first industry sectors likely to benefit from quantum computing due to the abundance of high-complexity financial use cases where computations need to be completed in real-time.
🔹 Bring Your Own Cloud:
“Bring Your Own Cloud” (also known as “Compute Over Object” or “Bring Your Own Bucket”) is a new architecture where compute and storage are decoupled – data is stored in a customer-controlled object storage location, and compute runs independently. Users control data ownership and retention policies!
🔹 AI Powered DevOps Lifecycle:
GenAI for developers is arguably the most mature category in the GenAI domain. New domain adaptation of LLMs leverages a company’s private code repositories and documentation to allow tools to deliver company-specific and even application-specific assistance.
🔹 Distributed Ledger Technologies: Tokenization of Traditional Assets
One key area anticipated to see significant adoption in 2024 is the tokenization of traditional financial assets. JP Morgan’s Onyx Digital Assets blockchain platform has recently surpassed $1 trillion in tokenized asset settlement since its inception in 2020. Estimates of market size are roughly $10-$20 trillion TAM.
🔹 AI-Driven Digitized Workplace:
Every touchpoint employees have with a physical element of the workplace will likely have a digital and connected interface, be that natively or through a standalone app on the employee’s phone. Some organizations may even choose to build a ‘SuperApp.’
🔹 AI-Powered Operating Systems:
An AI-driven OS would see the LLM embedded directly into the kernel. This would enable user context and intent to be shared across the device, enabling the AI OS to invoke multiple applications and access files to solve a single user prompt
🔹 Delivering Automation with AI Agents & Orchestration
AI Agents take the next steps in a workflow on behalf of the user via a single prompt by creating tasks, executing them, collecting any feedback, and effectively prioritizing based on the task list until the objective is complete.
🔹 Securing AI/ML:
There are several emerging components of AI/ML security including scanning open-source models for vulnerabilities or malicious code, implementing security testing for adversarial attacks, and monitoring model inputs and outputs for sensitive data exfiltration or adversarial prompts.
👊STRAIGHT TALK👊
If ever you need an example of how AI is going to change everything, read these 19 technologies carefully to see how deeply AI is being integrated into the organization.
Virtually no part of JP Morgan will be untouched by AI, and the company is deadly serious about using AI as a competitive advantage.
This will hit mid-tier banks hardest. If they are competing with JPM and have a tough fight today, tomorrow, when JPM AI programs kick in, that fight will be even harder. Smaller banks that can claim local favorite status will be less severely impacted.
Wherever JPM goes, the competition will follow, but they’ll always be lagging behind the leader, and that is a big problem.
What do you think?
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