Last year, JPMorgan introduced a complimentary Cash Flow Intelligence AI solution for its corporate clients. According to a recent Bloomberg article, the bank reports that this tool has enabled some users to reduce manual tasks performed by humans by approximately 90%.
The AI solution is utilized by approximately 2,500 unnamed customers, marking its success to the extent that JPMorgan is considering implementing a fee for its use in the future, as noted in the same report.
While taking in an interview, Tony Wimmer, head of data and analytics at JPMorgan’s wholesale payments unit said: “We are going to keep investing into this solution because we see that we’re starting to really crack this workflow.”
Wimmer noted that the tool, designed for corporate treasuries to examine and predict cash flows, has garnered “tremendous” attention from clients who are presently accessing it at no cost. He mentioned that his company is contemplating introducing a fee for the usage of the solution, known as Cash Flow Intelligence, in the future.
The rise of AI tools at workplaces has been painting an alarming picture of job cutoffs as the technology continues to reduce the need for human workers. While companies are not outright admitting it, most are still working towards adopting AI to boost productivity and reduce costs, which undoubtedly also include labor costs.
Jamie Dimon, CEO of JPMorgan, has indicated that such advancements in technology may soon enable companies to reduce the standard workweek to a mere 3.5 days. Initially setting a 2023 ambition to generate $1 billion in “business value” through AI, JPMorgan revised this figure upward to $1.5 billion during their May investor day event.
Wimmer added: “Cashflow forecasting is very complex and you need a lot of judgment. I’m a firm believer that components of machines enhanced by humans will not go away for a long time.”
Although the software has enabled a reduction in manual tasks by 90% for some clients, specifically in the areas of categorizing and mapping out payment flows, on the bright side, the responsibility for making liquidity management decisions remains with human personnel, at least for now.
