### Unveiling Wall Street Giants’ AI Plans Through Trademark Applications

Recent insights from Prevalent shed light on banks’ exploration of artificial intelligence for innovation. Patents play a vital role in providing businesses a competitive advantage by safeguarding technological advancements internally. Bank of America and Capital One lead in AI patent filings, focusing on user experience (UX) and investment strategies.

The surge in patent filings for AI and related enhancements among major corporations, as reported by advisory firm Evident, indicates a growing trend. In the year ending June 2022, there was a 21% increase in new patent applications compared to the previous year.

Banks often utilize patents to protect their intellectual property, ensuring that their technological advancements remain proprietary. This strategy not only secures their innovations but also enhances their market value during mergers or acquisitions. Additionally, a robust patent portfolio aids banks in attracting top talent.

The emphasis on AI patents reflects a significant interest in technology advancements, predating the recent surge in generative AI and technologies like ChatGPT. Capital One and Bank of America lead the pack in patent filings, capturing 66% of the total patents among the top 50 banks tracked by Evident.

While patents indicate a company’s research focus, not all financial institutions adopt a patent strategy due to associated costs and time investments. The process of obtaining patents can take several years to yield returns, and not all applications are approved.

AI patents in the banking sector primarily target trading strategies and customer experience enhancements. Technologies like Bank of America’s Erica and Capital One’s Eno underscore the emphasis on AI assistants and user-centric innovations. These inventions aim to streamline trading complexities and enhance decision-making processes.

Compliance and fraud detection are other key areas where banks are leveraging AI technologies. Some institutions are utilizing AI to train chatbots on regulatory compliance, enabling employees to seek AI-driven guidance on regulatory queries, as mentioned by Sumeet Chabria, an AI consultant and former Bank of America executive.