JPMorgan CEO Jamie Dimon: AI saves the bank billions a year

JPMorgan Chase, the largest bank in the US with $3.46 trillion in assets, invests approximately $2 billion per year in AI technology. According to CEO Jamie Dimon, that investment has already paid for itself.

Dimon told Bloomberg TV Tuesday that the bank has saved roughly “$2 billion” every year by using AI in everything from risk management to customer service, and that AI now helps operations in almost every part of the bank, from marketing to idea generation. About 150,000 employees a week use JPMorgan’s internal AI model, trained on the bank’s data, to conduct research, summarize reports and scan contracts, he said.

“We have shown that for $2 billion in costs, we get about $2 billion in benefits,” Dimon told the newspaper. “Some we can do in detail: we did this, we reduced staff, we saved time and money. Some you can’t: it just improved the service.”

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Dimon claimed the $2 billion in cost savings was just “the tip of the iceberg.” He said the bank already has hundreds of use cases for the technology, including fraud detection and risk management, and that number will grow. One use case is an AI cash flow intelligence tool that reduced human-centric manual work by almost 90% last year.

However, Dimon also warned that AI has the potential to eliminate some jobs, adding that the bank is focusing on “retraining” and “redeployment” of employees.

“For JPMorgan, if we are successful, we will have more jobs, but they will probably be there [fewer] jobs in certain positions,” he told Bloomberg TV.

Dimon also said that JPMorgan has a long history with AI; the bank has been using and developing the technology ever since 2012. There are currently approximately 2,000 AI and machine learning experts working there.

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Dimon has previously spoken out about the impact of AI on humanity, predicting in October 2023 and 2023 a year later that thanks to technology, the next generation will “live to be 100 years old” and “work three and a half days a week.” He said AI is the next wave of technological advancement, like the steam engine or the Internet.

Meanwhile, JPMorgan’s operations are performing well. The bank’s most recent earnings report for the second quarter of the year was “strong,” Dimon said in a July note earnings press releasewith a net profit of $15 billion. The next earnings reporting date for the bank is October 14.

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JPMorgan Chase, the largest bank in the US with $3.46 trillion in assets, invests approximately $2 billion per year in AI technology. According to CEO Jamie Dimon, that investment has already paid for itself.

Dimon told Bloomberg TV Tuesday that the bank has saved roughly “$2 billion” every year by using AI in everything from risk management to customer service, and that AI now helps operations in almost every part of the bank, from marketing to idea generation. About 150,000 employees per week use JPMorgan’s internal AI model, trained on the bank’s data, to conduct research, summarize reports and scan contracts, he said.

“We have shown that for $2 billion in costs, we get about $2 billion in benefits,” Dimon told the newspaper. “Some we can do in detail: we did this, we reduced staff, we saved time and money. Some you can’t: it just improved the service.”