The financial sector’s approach towards artificial intelligence has been inconsistent, but Bank of America is now showing strong support for the use of AI.
According to a note sent to clients and reported by CNBC and other sources, BofA equity strategist Haim Israel highlighted AI as one of the top investment trends for the year, using persuasive language to convince clients of its potential.
“We are at a defining moment — like the internet in the ’90s — where Artificial Intelligence (AI) is moving towards mass adoption,” the client note reads, “with large language models like ChatGPT finally enabling us to fully capitalize on the data revolution.”
Taking the comparison further, Israel added that software like OpenAI’s game-changing ChatGPT will become an essential commodity.
“If data is the new oil,” the strategist predicted, “then AI is the new electricity.”
While some of its competitors express caution, Bank of America appears to have a strong pro-AI stance. The financial institution emphasized AI as a top trend to watch and invest in this year and highlighted several big tech stocks to monitor.
In contrast, JP Morgan recently banned the use of ChatGPT by its employees due to compliance concerns, and Morgan Stanley reportedly shares some concerns about the potential drawbacks of AI, though their stance is not as strict as JP Morgan’s.
“When we talk of high-accuracy task,” Morgan Stanley analysts wrote in a note viewed by Insider last week, “it is worth mentioning that ChatGPT sometimes hallucinates and can generate answers that are seemingly convincing but are actually wrong.”
AI is rapidly now taking the world in its grasp considering which, it is not surprising that big banks are responding in different ways.