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2026-02-18 00:52:10
[JPMorgan Chase: AI-Driven Industry Transformation May Accelerate Consolidation Among Small US Banks] JPMorgan Chase analysts suggest that small and medium-sized US banks unable to afford large investments in artificial intelligence (AI) may be forced to merge to mitigate the impact on their revenue. A team led by Vivek Juneja points out that while most banks are actively deploying AI capabilities to compete, growing market concerns about the technology's impact have triggered a recent pullback in the banking sector. Analysts believe that banks must increase their investments to remain competitive. "Banks capable of increasing their AI investments will have an advantage; these institutions are typically large, leading banks and some regional banks," Juneja wrote in the report. "Currently, the actual impact of AI on revenue and profits is not yet significant, but it is expected to drive more small banks towards consolidation."
