JPMorgan Chase has solidified its status as a leading entity in AI research, as indicated by recent insights from the benchmarking platform Evident.
The analysis reveals that the banking behemoth has significantly increased its share of AI research output, jumping from 30% in 2018 to an impressive 45% in 2023. This rise is attributed to substantial investments in acquiring AI talent, with JPMorgan currently employing over 200 AI researchers. This figure is more than four times that of its closest competitor, the Royal Bank of Canada, and accounts for nearly half of the AI research talent available across the top ten banks.
The report underscores the growing importance of AI research as a cornerstone for future success in the field. Major banking institutions are leveraging published research to bolster their AI credentials and attract potential talent, partners, and investors. In the past year alone, the largest banks have produced over 330 research papers focusing on AI, marking a sixfold increase in output over the last five years.
Annabel Ayles, co-founder and co-CEO of Evident, notes, “Our data illustrates a direct link between banks that prioritized AI research five years ago and their current leadership status. Conversely, those that have not invested similarly are facing limitations in their AI capabilities.”
The findings highlight HSBC, BBVA, and Goldman Sachs as key players to monitor in 2024. Each of these banks has expanded its AI research teams at a faster rate than their competitors over the past year, positioning them for significant progress in the near future. Ayles adds, “Building AI research capacity takes time, and it takes even longer for those teams to produce impactful research. However, we’re already witnessing new contenders like HSBC, BBVA, and Goldman Sachs ramping up their investments in this domain. While they may not immediately rival the established leaders, their proactive approach could keep them relevant in the competitive landscape.”
Between 2018 and 2023, the top ten banks accounted for over 80% of the industry’s total AI research output, with US banks consistently contributing nearly 70% each year. Notably, only two European banks, BBVA and Intesa Sanpaolo, and no Asian banks, made a mark in terms of research impact.
Evident also highlights that these leading banks share a common strategy: they have centralized their AI capabilities within dedicated research labs or centers of excellence, which serve as pivotal mechanisms for attracting and retaining top talent.
Alexandra Mousavizadeh, co-founder and CEO of Evident, emphasizes, “Producing cutting-edge AI research is essential for banks to establish themselves as innovators and leaders in the AI landscape. Without a robust research output, these institutions may struggle to attract top talent and convince partners and stakeholders of their strategic importance in an increasingly AI-driven market.”
Moreover, the advent of Generative AI is prompting many banks to reevaluate the positioning of their research teams within their organizational structures, ensuring a balance between centralized and federated approaches to AI use-case identification across the enterprise. Ultimately, the speed at which banks can scale AI capabilities throughout their operations may define their success in the evolving financial landscape.