Today we look at JP Morgans push into AI and discuss what healthcare can learn from their approach.
Today in health. It, what we can learn from banking's push. Into a, I, my name is bill Russell. I'm a former CIO for a 16 hospital system and creator of this week health set of channels, dedicated to keeping health it staff, current and engaged. We want to thank our show sponsors who are investing in developing the next generation of health leaders, short test and artists.
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All right. , I'm going to go off of one story to give you a broader picture of what's going on. And the story is JP Morgan named exact Teresa
H E I T S E N R E T H E R as head of new unit in AI. Push. , the move is part of the bank's larger push towards artificial intelligence, which CEO, Jamie diamond has deemed critical for the bank's future success. Artificial intelligence is critical for the bank and critical to our company's future successes said diamond per Bloomberg goes on to talk about, , her accomplishments and whatnot.
It's interesting to note, she is someone who has shown a propensity to, , , to essentially foster businesses, but large, really large businesses, you know? , businesses that manage $29 trillion in assets and those kinds of things. And so this is a leader. This is a business leader who knows how to make a difference in a market.
And it's interesting that Jamie diamond would pick someone of this pedigree to do this, and not necessarily a technologist per se, to do this. So that's the first story. Let me go into the second one. And the second one is their annual report. This is what Jamie diamond had to say in their 2022 annual report, which came out in April.
Artificial intelligence. AI is an extraordinary and groundbreaking technology. AI and the raw materials that feed it, data will be critical to our company's future success. The importance of implementing new technologies. Simply cannot be overstated. We already have more than 300 AI use cases in production today for risk prospecting, marketing, customer experience and fraud prevention.
And AI runs throughout our payments processing and money movement systems across the globe. AI has already added significant value to our company. For example, in the last few years, AI has helped us. To significantly decrease risk in our retail business by reducing fraud and illicit activity and improve trading optimization and portfolio construction by providing.
Optimal execution strategies, automating forecasting and analytics and improving client intelligence. We currently have over a thousand people involved in data management, more than nine, 900 data scientists, AI and machine learning experts who create new models and 600 ML engineers who write the code to put models in production.
The group is focused on AI and ML across natural language processing. Time series analysis and reinforcement learning to name a few we're imagining new ways to augment and empower employees with AI through human centered collaborative tools and workflow leveraging. Tools like large language models, including Chiechi PT.
We also have 200 person top-notch AI research group. Looking at the hardest problems and new frontiers in finance, we were recently ranked number one on the evident AI index, the first public benchmark of major banks on their AI maturity. We take the responsibility responsible use of AI very seriously and have an interdisciplinary team of ethicists helping us prevent unintended misuses, anticipate regulation and promote trust.
With our clients, customers and communities, AI and data use is complex. It must be done following the laws of land, but it is an absolute necessity. That we do at both for the benefits. I just described and equally for the protection of the company and the financial system, because you can be certain that the bad guys will be using AI as well.
All of our technology groups, firm-wide worked together in a flywheel of innovation. And deliver state-of-the-art improvements. We are proud that our AI teams have contributed top quality. Novel research and compelling solutions that are transforming more and more businesses, , and use cases every day.
AI is inextricably inextricably linked with cloud-based systems, whether public or private. And digital capabilities. Our company needs the cloud for its on-demand compute capacity, flexibility, extensibility, and speed. Native cloud-based approaches will ultimately be faster, cheaper, and aligned with our newest AI techniques.
And they will give us easy access to consistently evolving developer tools. We have spent 2 billion building new cloud-based data centers and are working to modernize a significant portion of our applications. And they're related databases to run in both our public and private cloud environments. To date, we have migrated approximately 38% of our applications to the cloud. Meaning over 50% of our application portfolio, this includes third party cloud-based applications is running on modern environments. I'm going.
, one more paragraph. And then I'm going to come back to this, this journey to the cloud. Is hard work but necessary unlocking the full potential of the cloud. And nearly 550 petabytes of data will require replatforming putting data in the cloud, in the cloud eligible format and refactoring. Rewriting, approximately 4,000 applications.
This effort will involve just not just the 57,000 employees we have in technology. But the dedicated time of firm-wide management teams. To help in the process. Wow. I mean, there's so much in this one is, , clearly believes in AI believes in technology technology's ability to move things forward. , interdisciplinary team around the ethics is an important distinction as well. , leading the way in terms of the use cases that are going to be, , utilized and the number of use cases that are already, , utilized, putting a leader over that group.
Is, , is pretty amazing. , And so you might ask, you know, what, what is there to be learned? Oh, let me give you one more story. JP Morgan. This is, , May 25th, JP Morgan is developing a chat GPT like AI service that gives investment advice. JP Morgan is developing that the company applied to trademark the product called index GPT earlier this month, according to a filing from New York based bank.
It's an AI program to select financial securities said trademark, lawyer, Josh. Gerben. This sounds to me like they're trying to put my financial advisor out of business.
Interesting. And that's how that can be read by the way. , and primary care doctors, I've, I've now said multiple times that I believe that a significant amount of primary care we will now I believe have a primary care doctor for every person in the country. And that primary care doctor in most cases, in a majority of cases will be a silicon-based.
, Primary care doctor. So it will be an AI functioning primary care doctor. I believe that's going to be the case. I don't know what the timeframe is on that three, five years. It depends how much. Regulatory blocks we put up and how much of the, , existing establishment pushes back against that concept?
But that's the direction it's going. Not that. We, , that we're putting primary care doctors out of business, primary care doctors will be informing those models. , and there will be a significant amount of work for the remaining primary care doctors. So the reality is we can't get enough. Most people do not take advantage of their primary care doctors. And this is a way in a very convenient form and a very private form, , to allow people to have access to primary care doctors.
So, you know, what can we learn from the banking institutions? As they move in this direction. One is. This message is coming from the CEO. My question is, and I'm wondering this more and more. Do we have the right leadership in healthcare at the CEO level? Do our CEOs understand how technology is going to impact this industry? Are they researching? I guarantee you when Jamie diamond started out, he was not a technology.
Guru. But if you were going to have a technology conversation, I would put Jamie diamond up against most CEOs these days. He is amazingly fluent on, especially the emerging technologies and their application to his business. I've heard him speak. You might say, oh, this is a. At annual report on chores written by somebody else. And that could be the case, but I've heard him speak and he is equally as fluent when he speaking.
You might say he has notes now? I don't think he does have notes. , it's not his nature. It's not who he is. He does a lot of things off the cuff. And just speaks. I think he is fluent in these, in these conversations because he believes that they are critical to the future success of banking. , not, not just JP Morgan chase, but banking in general.
So when you look at that, you look at a CEO, led CEO, understanding the leader at a minimum, the leadership team needs to understand the dramatic impact that AI is going to have on the business. And maybe that's the CIO educating the entire team. Regardless of what it is. If I walk in, if I were on a board for a health system,
And I were having a conversation. , with that team, I would ask them, what do you think the impact of AI is? And then after I, I got the generic answer, I would push and say, okay, Jamie diamond says 300 AI use cases in production today. How many AI use cases do you have in production today? What areas do you see AI being applied within healthcare?
How are you moving in that direction? Who leads these initiatives? I think it's interesting. He appointed somebody very high level. To run the AI initiatives to, , coalesce. The energies and the focus and the resources around those AI initiatives. I think that is telling in and of itself, he took one of the key people. And by the way, just remember that these initiatives don't necessarily need the best technical person to run them.
They need the person that can go out into the organization. And, , coalesce. Activities. They can bring the right people to bear. They can, , garner support. They can get a consensus and they can drive projects forward. Right. So it doesn't necessarily have to be a technologist, although clearly informed by technologists and technology people.
They have a thousand people involved in data management, 600 ML engineers. They are investing in this. They believe in its transformative capability into the business. They have a 200 person AI research group. So they are doing research in this area. If you're doing investments, are you investing in companies that are giving back to you in terms of AI?
Tools research and knowledge. , all of their groups firm-wide are working together in a flywheel of innovation. Has your health system? Coalesced around a model that builds on itself where you have innovation in one department, feeding innovation on another department. And those kinds of things. We have gotten to multidisciplinary teams coming together around solutions, but have we gotten into this flywheel of innovation?
, and then he talks about cloud-based. , systems and the move to cloud based systems. It's interesting. How much of your, , technology has moved to cloud based systems and it's, it's interesting. And it's distinction. He doesn't talk about just, oh, it's running in the cloud. He's talking about
Architecting their applications and their datasets. To be accessible in the cloud to the cloud tools. So the AI and ML that is available in the cloud, I'm not even sure we have started that process in healthcare. We are moving things to the cloud and we feel like we've moved into the cloud, but we have not moved a lot of them to cloud architecture.
And that is the next thing that's going to be required in order to stay ahead of what's going on the health systems that have done this, the health system that are effectively leveraging these kinds of technologies. And I think of, you know, it's the big, it's the big ones. It's I think a male. Mayo has hired a key leaders to address these kinds of things.
, not only Chris Ross, Chris Ross is supporting a lot of things that are happening. With Google and that's fantastic, but you have John Halakah, who's leading up a lot of the innovation that's happening. , in that space as well and its application into the clinical side, , Stanford also has, I like the stuff that Mike Pfeffer's doing and, , and he's surrounded by a phenomenal team. I've seen some of his people speak.
On a chat GPT, TA like models and large language models and how they're B, how they could be applied to healthcare and whatnot. They, , , because I think of their proximity to Stanford that really helps. And I know you CSD. Is, , doing a lot of stuff, Josh Glandorf and, , obviously, , the, , leadership team that is, , is there as well.
Is really making a difference. And I know there's others out there. But the question is, do you believe in the transformative capabilities of AI, will it transform healthcare? And if it is going to transform healthcare, how much progress now? With all that being said, I know there's going to be some small health systems sitting here going, Hey, what about me? How do I get ahead of this?
And the answer to that is in a lot of ways through partnerships and through informing your current vendors, how you see AI moving. There's no. , There. The knowledge is available to you. Even as a small health system, even as a rural health is a more critical access hospital. The knowledge is available to you. Gather the knowledge, understand the use cases, be able to present the vision.
, this is where I believe that AI is going to be applied within healthcare. And this is the opportunities that I think make the most sense for us and can move things. And then you can apply the, the various areas you think it's going to be applied. To the specific problem set that your health system has it's yes. They have more resources. Yes. They can hire more ML coders. And this is where you will go about it differently, but you still that the access to information, the ability to dream, the ability to put together a cohesive story.
, around AI and its implementation is something that's available to everybody. And I think something that can be done for every health system. And then you apply it to your local, , your, your local problem set and in applying it to your local problem set. A lot of times there were things I wasn't going to solve. Let's take cybersecurity. For example, St. Joe's. Yes, we're six and a half billion, $7 billion in revenue.
But at the end of the day, I wasn't going to spin up a cybersecurity group and that kind of stuff. I worked closely with my cyber vendors to say, here's my vision for how this is going to happen. I can't ha I can't keep adding people to my team to watch all these logs. AI has to be the answer, computers, reading those logs, identifying with a high degree of accuracy.
, if something is a positive, false, positive, , or just should be ignored kind of event, and I'm going to have to trust technology because I cannot staff to it. And so I would tell them, here's my vision. Here's what I'm seeing. And I would have conversations around the vision that I had for. And it was really up to them to meet that need. And if they didn't meet that need, eventually I would find another vendor that could meet that need. So.
, again, I love what, , JP Morgan chase does. , with regard to technology and Jamie diamond, I I'm a huge fan. I believe that, , he speaks very intelligently about the future of his industry. , I listened to him when he talks about economic trends and where things are going. I find him to be one of the least political business leaders. Although he supports a lot of things that people would say, oh, that's very political. , but he supports them because he believes in them.
He, he believes in moving those things forward. And so I think he keeps the politics out of business, but he doesn't. , he, he doesn't shy away from addressing, , issues that he sees as relevant, regardless of what the politics are around those. , it could be diversity, equity inclusion could be, , providing jobs to a inner city, , youth mentorship opportunities. And those kinds of things could be, , disparities, , in banking practices and those kind of things. He, he meets those things head on, , not necessarily from a political bent fro, but from a, ,
, but from a philanthropic isn't the right word. , But really a concerned citizen, , approach. And he brings to bear the resources of JP Morgan chase. So like him. I'm a huge fan. I like the way he leads his company. And, , and his push on technology. All right. That's all for today. If you know someone that might benefit from our channel, please forward them a note. They can subscribe on our website this week, health.com or wherever you listen to podcasts.
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