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

Join the conversation! 12 Comments

  1. Automation is also used in hiring people. Some think it works while others do not. I guess efficiency is quantifiable, depending on what are considered acceptable losses.

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  2. The ‘boss and servant’ system has been obsolete for a long time but it makes billionaires so those who rule don’t want change. It will be up to “the people” to change the system. If AI is taking the jobs then AI or its owners will have to pay the taxes and the consumers’ salaries lost to AI. Or, do away with capitalism altogether. Going “Luddite” and attacking technology isn’t going to solve the problem as some are doing attacking driverless cars. We’re at a cusp; change is inevitable and “the people” as usual are unwilling to figure out what needs to happen to accommodate those changes. So… more trouble down the road.

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  3. For Your Review – Proof of World Bank Crimes – Ultimate Agreement – http://annavonreitz.com/proofofworldbankcrime.pdf

    Educate Yourself – http://www.annavonreitz.com/

    Liked by 1 person

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About Lander7

Making Clear What Is Hidden In Plain Sight

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