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JPMorgan Chase & Co.’s (NYSE:JPM) $2 billion annual investment in artificial intelligence has already “paid for itself,” CEO says Jaime Dimon.
AI now generates significant savings and operates in almost all business lines of the country’s largest bank, Dimon told Bloomberg TV earlier this month.
The bank has been investing in AI since 2012, long before the recent boom, and now spends about $2 billion a year. Dimon told Bloomberg: “We’ve shown that for $2 billion of spending, we have about $2 billion of profit.”
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According to Dimon, approximately 150,000 employees now use JPMorgan’s internal AI model weekly to summarize reports, conduct research and analyze contracts. He also said these advances are “just the tip of the iceberg,” with hundreds of use cases already underway, from fraud detection to risk management.
“People should not bury their heads in the sand. This will affect jobs,” Dimon told Bloomberg, warning that AI adoption will reshape the workforce. He said automation is already streamlining operations across the bank, adding that “there will be fewer jobs in certain functions,” while emphasizing the importance of reskilling and reshoring.
CFO Jeremy Barnum He said during the bank’s annual investor presentation in May that the company is “asking people to resist headcount growth wherever possible” while continuing to hire in “high-certainty areas.”
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JPMorgan recently announced a 10-year plan to facilitate and finance approximately $1.5 trillion in domestic industries critical to America’s economic and national security. The effort will deploy up to $10 billion in direct equity and venture capital investments and will focus on four strategic pillars: supply chain and advanced manufacturing, defense and aerospace, energy independence and resilience, and cutting-edge and strategic technologies such as artificial intelligence and quantum computing.
Dimon added that the goal is to reduce the United States’ dependence on foreign suppliers for critical materials and manufacturing.