North American banks are putting their money on the ever-adapting value of AI, according to a report by banking data provider Evident.
The report - which surveyed banks which employ 650 AI researchers in total - found that North American banks published 80% of all bank AI research and made 60% of all bank AI-related investments in 2022.
Further, these banks filed 99% of all the AI-related bank patents in 2021, tipping North America as ahead of the curve in terms of artificial intelligence.
Companies taking the helm of this movement include J.P. Morgan Chase (leading in AI research) Capital One (AI patents) and Wells Fargo (AI investments), alongside Royal Bank of Canada, TD Bank, Goldman Sachs and First Citizens.
According to Axios, these results indicate that “banks and smaller fintech competitors that don't have a
centralized AI innovation strategy are falling behind their big bank competitors”.
On the topic,
Best Practice AI co-founder and partner
Tim Gordon took to LinkedIn, remarking: “For such a structurally important industry, it is striking how concentrated the leadership is: the top 5 banks, by category, published 67% of the AI research, filed 94% of the patents and made 51% of the AI investments. These are all North American banks.
“There is a real gap in the market for a European ‘AI Champion’ bank to emerge - with stronger potential in France and Spain than the UK.”
LinkedIn has hinted at a huge potential payoff for banks quick to invest in AI, referencing a
2020 report by McKinsey which estimated that AI technologies could hold up to $1 trillion in value for the global banking sector.
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