The largest bank in the U.S., JP Morgan Chase & Co., is one of the largest employers in the American banking sector, with more than 240,000 employees serving millions of customers.
A percentage of those employees are lawyers and loan officers who spend a total of 360,000 hours each year tackling a slew of rather mundane tasks, such as interpreting commercial-loan agreements.
Using machine learning the corporation may no longer need most of that labor force. It takes thousands of employees the full year to do the same work that this one AI did in a few seconds.
JP Morgan implemented a program called COIN, which is short for Contract Intelligence. COIN runs on a machine learning system that has shortened the time it takes to review documents and decreased the number of human loan-servicing mistakes.
JP Morgan has a $9.6 billion technology budget to push more automation and less human mistakes.
AI increases efficiency and limits human error.
Automation status for banks:
- Bank Of America has already cut 100,000 workers
- Wells Fargo is cutting 26,500 workers
- Barclays will cut 30,00 workers
- NAB is letting go of 6,000 workers
- Citigroup will release 10,000 workers
- China’s big four state-owned banks slashed 19,000 workers
- Deutsche Bank is looking to remove 45,000 workers
- Japan’s banks plan to remove 33,000 workers
Smaller banks will join this movement but no news on how many will be laid off.
While we argue with each other over nonsensical issues, real jobs are lost to a real threat.
Just a thought