Welcome to AI Street! I'm Matt Robinson, a longtime financial journalist, and my goal is to help you understand how AI is reshaping Wall Street. Every Thursday, I share the latest news, analysis and expert interviews. Feedback? Reach out: [email protected]

The Rundown

• JPMorgan’s AI Analyst

• Goldman’s AI Outlook

• AI Adoption at Man Group

• ICYMI: Interview with Dr. Lopez-Lira

• Fundraising for Finance LLM

• Auditors Adopt AI

• + Quick Links

BANKS
JPMorgan Launches AI Analyst Bot 🤖 

JPMorgan Chase, the largest U.S. bank, rolled out a generative AI tool that’s designed to function as a virtual research analyst, assisting staff with writing, idea generation, and document summarization, according to the FT.

The bank introduced LLM Suite to its asset and wealth management division, with about 50,000 employees (15% of total staff) now having access. The bank developed a proprietary LLM platform in-house because its staff are not permitted to use any consumer AI chatbots. The product doesn’t contain specific asset and wealth-management division knowledge and is meant for general-purpose productivity, per Bloomberg.

“JPMorgan is leveling up the quality of advice across the organization” by using AI, said Alex Hoffmann, cofounder and CEO of Marvin Labs, an AI copilot for money managers. An advisor can quickly get up to speed to have an informed opinion by leveraging Gen AI -- a big efficiency boost for a bank with thousands of money managers.

The launch marks a pretty significant milestone in the financial industry's adoption of generative AI, which creates new content by analyzing patterns in large datasets. JPMorgan CEO Jamie Dimon has been a big proponent of AI. The bank plans to spend $17 billion on technology this year, an increase of 10% from 2023.

MORE: Morgan Stanley’s CEO Says AI to Save Advisors 15 Hours a Week

Goldman Sachs CIO Marco Argenti on Gen AI

Argenti, the chief investment officer, is introducing Gen AI tools to the firm, and expects that within three years, AI will impact every Goldman employee, according to a short Q&A in Business Insider.

Goldman, like its peers, has given its software engineers Gen AI tools to help write code faster. Now, the bank is looking to provide front-office workers tools to summarize long email threads, brief execs ahead of important meetings and come up with better ways to create pitch books.

Argenti also highlighted the importance of accuracy:

HEDGE FUNDS
AI won’t be making decisions ‘anytime soon,’ says Man Group CEO

The head of one of the world’s biggest hedge funds says AI is unlikely to replace traders anytime soon.

“I don’t think of AI as making investment decisions anytime soon,” Robyn Grew, the first woman to lead the 241-year old hedge fund, told CNN. “I think that the skill of knowing the power of this technology is to know its limitations.”

IN CASE YOU MISSED IT
Interview with Dr. Lopez-Lira

AI Street interviewed Dr. Alejandro Lopez-Lira, a finance professor at the University of Florida and author of “The Predictive Edge: Outsmart the Market using Generative AI and ChatGPT in Financial Forecasting.”

Lopez-Lira has been at the forefront of AI and finance, publishing a research paper last year on ChatGPT’s ability to predict stock returns based on news headlines. Read the interview here.

REGULATION
European AI Act Training Disclosures Expose US Copyright Risks

The EU AI Act has the potential to expose Silicon Valley’s tech giants, among other US companies with European Union customers, to fresh copyright litigation, according to Bloomberg Law.

The Act will impose the most comprehensive rules yet on the development and use of AI. Starting in August 2025, it will require companies operating “general-purpose AI models” to make publicly available a “sufficiently detailed” summary disclosing the content used to train AI.

EU officials still need to hammer out what “sufficiently detailed” means, but they’ll likely require a degree of specificity that would help copyright owners seeking to enforce their rights, according to researchers and attorneys.

FUNDRAISING
Aveni Raises £11M for Finance LLM

Edinburgh-based AI fintech Aveni has secured £11M in Series A funding, led by Puma Private Equity with participation from Par Equity, Lloyds Banking Group and Nationwide, according to a July 29 press release. The investment will drive the development of FinLLM, a financial services-specific large language model.

Wealthtech Startup Powder Raises $5M in Seed Funding

Powder is using generative AI to automate tasks involved in the client proposal process. Powder CEO Kanishk Parashar said the technology now has 20 mid-sized RIA firms signed on, ranging from $1 billion to $100 billion in assets under management, per WealthManagement.

AI boosts insurance tech financing: Report

Global financing for insurance technology (insurtech) firms rose 40% to $1.27 billion in the second quarter from the previous three months, helped by money going into AI-focused businesses, reinsurance broker Gallagher Re said on Aug. 1, per Reuters.

AI ADOPTION
KPMG Rolls Out Gen AI Tools For Auditing

KPMG this summer rolled out new generative AI capabilities to its 90,000-person global audit practice, in a move meant to improve the quality of its work, per Bloomberg.

Competitors Deloitte, Ernst & Young and PwC have also sought over the past year to access the growing Gen AI market, making a succession of billion-dollar investments and forming alliances with technology providers.

Andreessen Horowitz put together a table of the many firms looking to leverage AI for auditing.

AI-powered financial advisor has quickly gained $20 billion in assets

An automated financial advisor called PortfolioPilot has quickly gained $20 billion in assets in a possible preview of how disruptive artificial intelligence could be for the wealth management industry, according to CNBC.

Gen Z Is Relying on AI To Make Financial Decisions: BMO Survey

61% of Gen Z use AI to help manage their finances and investments – more than any other generation, per a BMO Financial Group survey. 

QUICK LINKS
Almost a Third of Generative AI Projects Will Be Abandoned By End of 2025: Gartner

At least 30% of generative AI (Gen AI) projects will be abandoned after proof of concept by the end of 2025, due to poor data quality, inadequate risk controls, escalating costs or unclear business value, according to Gartner. 

Mastercard Doubles Fraud Detection Rate With Generative AI

“The new technology works by scanning transaction data across billions of cards and millions of merchants at faster rates than previously imaginable,” Rohit Chauhan, EVP of AI-Fraud Solutions at Mastercard, told PYMNTS.

Companies Turn to Smaller, Cheaper Models For AI Use Cases

Companies are increasingly deploying smaller and midsize generative AI models, favoring the scaled down, cost efficient technology over the large, flashy models that made waves in the AI boom’s early days, per WSJ.

AI BEYOND THE TRADING FLOOR
AI Gives Weather Forecasters an Edge

Predicting global weather patterns with new speed and precision, AI is doing in minutes and seconds what once took hours, according to the New York Times.

Thanks for reading!

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