J.P. Morgan believes that the disruption brought by artificial intelligence will drive mergers among small banks.

Analysts at JPMorgan Chase have stated that smaller banks in the United States may be forced to merge in order to offset the impact on their revenues of falling behind in the scale of spending on artificial intelligence. The team, led by Vivek Juneja, noted that while most banks are actively investing in AI capabilities to ward off competitors, concerns about the impact of this technology are growing and have fueled recent sell-offs in the industry. Analysts have stated that banks must increase investment to keep up with the pace. "Banks that are able to increase investment in artificial intelligence will have a competitive edge, and this is typically larger financial center banks and some regional banks," Juneja wrote. "There is currently not enough evidence to show the impact of artificial intelligence on revenue and profits, but it may lead to more mergers among smaller banks."