JPMorgan Chase & Co. (JPM) CEO Jamie Dimon says while artificial intelligence (AI) is poised to boost productivity, banks need to do more to help the workers who will be displaced by the tech. Synechron Co-Founder and CEO Faisal Husain joins Seana Smith and Madison Mills on Catalysts to discuss what the company that advises nine of the 10 of the largest banks outside of China on AI is telling clients.
“We believe that AI can play a big role in boosting productivity and thereby also reducing cost for a lot of financial institutions and also other enterprises. But at the same time, we’re still in the very early stages of this technology. It will take time to get it to a point where, as Mr. Dimon says, it massively affects jobs. So I think it will be a gradual process.”
Husain says it will take time for banks to see the full return on their investment in AI. “The technology is still evolving. It’s evolving at a very fast pace. We’re still trying to help our clients understand where it can be applied, how it can be applied, and people are going in different directions.”
Synechron is telling clients, “Don’t worry about finding the killer app for your company within your enterprise,” Husain says, telling that “productivity-focused initiatives” should initially be aimed at saving minute amounts of time in workflows first. “And use that as a way of leveraging AI within the enterprise rather than finding this nirvana, this killer app type of a solution which takes time.”
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This post was written by Naomi Buchanan.
Video Transcript
The big banks are getting in on a I JP.
Morgan Jamie Diamond telling Bloomberg that the benefits of a I are huge but warning that some workers could lose their jobs to it, saying banks quote have to find a better way to help the people who get hurt by it.
For on this we got Faisal who saying he’s the co founder and CEO C Aron.
It’s a company that advises nine of the the largest banks outside of China, specifically on a I technology and FAI.
So it’s great to speak with you here.
I do just want to start on banking because we’re on the heels here of bank earnings, and I’m curious from your perspective to what extent you think a I could be a driver of more profits from some of the big banks that you speak with.
Sure.
First of all, thank you for having me.
Um, we believe that a I can play a big role in boosting productivity and thereby also reducing cost for a lot of financial institutions and also other enterprises.
But at the same time, we’re still in the very early stages of this technology.
It will take time to get it to a point where, as Mr Diamond says, it it massively, uh, affects jobs.
Uh, so I think it will be a gradual process.
Uh, it will first be used as a productivity tool.
And you know who knows where this will end in 1015, 20 or 30 years from now?
Uh, like I said, it’s still very, very early for this technology.
OK, so how quickly do you We’re very early in the technology, obviously, for it to see the full impact of it.
But in terms of the return on investment, how quickly will we see that I?
I think again, it’s it will still take time.
Um, we’re still, you know, as as as users as companies.
Uh, the technology is still evolving.
It’s evolving at a very fast pace.
Uh, we’re still trying to, uh, help our clients understand where it can be applied, how it can be applied, and people are going in different directions.
It will take some experimentation to finally decide on where to implement it.
How to implement it first, Our recommendation is don’t worry about finding the killer app for your company within your enterprise.
Start with simple, uh, productivity focused initiatives where each individual in the enterprise can save five minutes here, 10 minutes there, 15 minutes elsewhere.
And use that as a way of leveraging a I within the enterprise rather than, you know, finding this this, um, Nirvana, this killer app type of a solution, which takes time.
Um, so, yes, it will eventually have a lot of impact within all types of enterprises, but it will be a journey.
Speaking more specifically about the productivity gains a Citigroup earlier this year talking about how the banking sector in particular could be heavily impacted by a I.
And that’s certainly what Jamie Dimond was talking about, uh, as well.
Here, what have you seen from clients in terms of productivity gains more specifically, and how that could impact their workforce.
Yeah.
So there’s a lot of, uh, proof of what we call proof of concept happening.
Trials that are happening where the technology is used in areas like client on boarding, uh, or KYC checks or claims processing.
These are, uh, intense back office and middle office, uh, operations that employ a lot of people That has a lot of friction, takes a lot of time.
There are various different types of documentation that flow through the system.
No two documents are the same.
So eventually, it requires a human to look at those, uh, those files, Uh, but especially with generative a I we have a new technology that can, uh, that can help with all of that and that can massively reduce the the manpower required and speed as well.