Brokerage Daiwa Securities has taken the lead among major financial institutions in the country in adopting the ChatGPT chatbot to help its employees work more efficiently.

Daiwa Securities began using ChatGPT, which it has described as having "immense potential," from Wednesday, with an eye to streamlining day-to-day tasks including information gathering in English.

The firm also said it hopes to see a reduction in costs and time for preparing outsourcing tasks such as creating documents, leaving employees more time to craft business plans and complete other assignments.

"We prioritized using advanced technology to streamline work efficiency and increase the time to interact with customers," said Susumu Yamamura, a spokesman for Daiwa Securities.

Among the major Japanese banks, Mitsubishi UFJ Financial Group plans to install ChatGPT this summer. Sumitomo Mitsui Financial Group has said it has started trial use of the technology, while Mizuho Financial Group has begun considering the use of such services.

In contrast, financial institutions in the United States and Europe are cautious about using ChatGPT due to privacy concerns.

Major U.S. banks, such as JPMorgan Chase & Co., Goldman Sachs Group and Citigroup, have reportedly allowed limited usage of ChatGPT by their employees. In late March, the Italian government banned ChatGPT in the country.

To address such fears, Daiwa Securities said it uses Microsoft technology to prevent information leaks to outsiders by creating a closed and secure environment.