JPMorgan may become ‘the Nvidia of banking’: Mike Mayo

As the adoption of generative AI in business continues to grow, the banking sector is the latest to embrace the technology, aiming to boost productivity and streamline operations. Wells Fargo Managing Director and Head of US Large-Cap Bank Research Mike Mayo joins Yahoo Finance Live to discuss his top AI picks in the banking industry, emphasizing that "if a bank does not have a good AI strategy, I would say they don't have a strategy." Mayo names JPMorgan (JPM) as his "best-in-class" pick, stating that the bank has the potential to become "the Nvidia of banking." He highlights that "more than any other bank" JPMorgan possesses the necessary resources, spending power, data, processes, and personnel to successfully implement and leverage AI across its business. Mayo notes JPMorgan's massive amount of data "is the fuel for AI," which the bank can utilize to gain valuable insight into its operations. Like TikTok's recommended content algorithm, JPMorgan can take advantage of "predictive behavior" models for its consumers.  On the other hand, Mayo identifies Citigroup (C) as his "worst-in-class" pick, stating that "they've failed the last twelve restructurings." He notes that the bank has fallen short on returns and efficiency. However, Mayo says that their consolidation into "five lines of business" could make it easier to tackle problems in each segment. "If they simply meet their targets, they will probably have some of the best year-over-year performance of any large bank."  For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Angel Smith