JPMorgan CEO Jamie Dimon said the bank’s multibillion-dollar push into AI is already delivering results — and could just be the beginning.
Dimon said in an interview with Bloomberg TV on Tuesday that the bank spends about $2 billion a year on AI and is seeing about the same amount in direct benefits.
“We have shown that for $2 billion of expense, we have about $2 billion of benefit,” Dimon said. “We did this, we reduced headcount, we saved this time and money.”
“We know about $2 billion of actual cost saves,” he added. “It’s the tip of the iceberg.”
JPMorgan has been working with AI since 2012. It’s now embedded across nearly every part of the bank, from risk and fraud detection to marketing, customer service, and idea generation, Dimon said.
He also said JPMorgan’s in-house large language model, trained on internal data, is used by about 150,000 people each week.
“It’s quite productive,” he said. “Our managers and leaders have to do it.”
But the CEO didn’t sugarcoat the potential impact of AI on the workforce.
“People shouldn’t put their head in the sand. It is going to affect jobs,” Dimon said, adding that AI will enhance some aspects of work, but also eliminate some jobs.
“But you’re better off being way ahead of the curve and retraining people,” he said.
Dimon said the bank is focused on retraining and redeploying employees whose roles change due to automation. “We’ll have more jobs, but there’ll probably be less jobs in certain functions,” he added.
Dimon and JPMorgan did not respond to a request for comment from Business Insider.
Big AI bets are under scrutiny
Dimon’s comments come amid growing doubts over whether the massive corporate spending spree on AI is actually paying off.
Executives at Meta say they expect to spend $600 billion on AI infrastructure, including massive data centers, through 2028. OpenAI and Oracle have announced plans to put $500 billion into a data center project dubbed Stargate.
The staggering scale of those investments has fueled talk of an AI bubble and the potential for a pop that could bring the stock market crashing down from record highs.
A Goldman Sachs report published in June said that many firms pouring billions into AI have yet to see measurable gains, thanks to high infrastructure and compute costs.
“AI technology is exceptionally expensive, and to justify those costs, the technology must be able to solve complex problems, which it isn’t designed to do,” Jim Covello, the head of global equity research at Goldman Sachs, said in the report.
“The starting point for costs is also so high that even if costs decline, they would have to do so dramatically to make automating tasks with AI affordable,” he added. “In our experience, even basic summarization tasks often yield illegible and nonsensical results.”
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