JPMorgan believes that disruptions caused by artificial intelligence will drive mergers among small banks

JPMorgan analysts say that smaller banks, which may struggle to keep up with the scale of AI spending in the United States, could be forced to merge to offset their revenue impacts. The team led by Vivek Juneja noted that although most banks are actively investing in AI capabilities to fend off competitors, concerns about the technology’s impact are growing, triggering a recent sell-off in the industry. Analysts stated that banks need to increase their investments to keep pace.