Artificial Intelligence

AI Could Be As Impactful as Electricity, Says Jamie Dimon

Jamie Dimon
Credit: Jeenah Moon - Reuters / stock.adobe.com

Jamie Dimon might be cautious about the economy, but he’s bullish on artificial intelligence.

The JP Morgan Chase (JPM) CEO, in his annual shareholder letter, said he believes the effects of AI on business, society and economy will not just be strong, but life altering.

“While we do not know the full effect or the precise rate at which AI will change our business — or how it will affect society at large — we are completely convinced the consequences will be extraordinary and possibly as transformational as some of the major technological inventions of the past several hundred years: Think the printing press, the steam engine, electricity, computing and the Internet, among others,” Dimon wrote.

The financial institution has been using AI for over a decade and Dimon noted there are now more than 2,000 data scientists and AI and machine learning specialists on staff. The technology is used in over 400 use cases in areas such as marketing, fraud and risk, and more are on the way.

“We're also exploring the potential that generative AI (GenAI) can unlock across a range of domains, most notably in software engineering, customer service and operations, as well as in general employee productivity,” he wrote. “In the future, we envision GenAI helping us reimagine entire business workflows.”

Ultimately, Dimon said, he expects AI to augment virtually every job at the company, reducing headcount in some areas, but expanding it in others.

JP Morgan is capitalizing on its interest in AI, advertising last year for more than 3,600 AI-related jobs, almost twice as many as Citigroup, which had the second highest number of financial service industry listings (at 2,100). Deutsche Bank and BNP Paribas both posted as for a little over 1,000 AI positions.

One of the tools JP Morgan is working on is a ChatGPT-like service, which helps customers choose potential investments. The company last May trademarked IndexGPT, saying it would tap “cloud computing software using artificial intelligence” for “analyzing and selecting securities tailored to customer needs.”

Dimon has been a long-time proponent of AI, saying earlier this year the technology “can do things that the human mind simply cannot do.”

While he is enthusiastic about the future of AI at the bank, Dimon noted in his letter that the company is not ignoring the potential risks of the technology.

“You may already be aware that there are bad actors using AI to try to infiltrate companies’ systems to steal money and intellectual property or simply to cause disruption and damage,” he wrote. “For our part, we incorporate AI into our toolset to counter these threats and proactively detect and mitigate their efforts.”

The company will also continue to work with regulators, clients and experts, he said, to be transparent in how AI helps JPM make decisions in the future.

Dimon’a annual letter is a must-read in the investing world. Among other topics covered in this year’s missive were his concerns about inflation and the current geopolitical theater. He also remains skeptical of a soft landing by the Federal Reserve.

"Equity values, by most measures, are at the high end of the valuation range, and credit spreads are extremely tight,” he wrote. “These markets seem to be pricing in at a 70% to 80% chance of a soft landing — modest growth along with declining inflation and interest rates. I believe the odds are a lot lower than that."

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Chris Morris

Chris Morris is a veteran journalist with more than 30 years of experience, more than half of which were spent with some of the Internet’s biggest sites, including CNNMoney.com, where he was Director of Content Development, and Yahoo! Finance, where he was managing editor. Today, he writes for dozens of national outlets including Digital Trends, Fortune, and CNBC.com.

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