JPMorgan Analysts See AI Disruption Spurring Small Bank Mergers

Smaller US banks struggling to keep up with artificial-intelligence spending may be pushed into mergers to offset the impact on their revenues, according to analysts at JPMorgan & Chase & Co.

The team led by Vivek Juneja noted that while most banks are actively investing in AI capabilities to fend off competitors, concern over the technology’s impact has been on the rise and drove the recent selloff in the sector. Lenders will have to spend in order to keep up, the analysts say.