JPMorgan Chase CEO Jamie Dimon recently gave a clear warning about the disruption power of artificial intelligence. Dimon believes that job losses are inevitable, but so is the opportunity to retain and deploy workers into new roles. As reported by Business Insider, In an interview with Bloomberg TV, Dimon said that the bank has invested about $2 billion as an annual investment in AI and is already making $2 billion in direct benefits. This includes the headcount reductions and operational savings. “We know about $2 billion of actual cost saves,” he said. “It’s the tip of the iceberg.”
Layoffs are coming, but so is retraining
Dimon also talked about layoffs and he did not shy away from the workforce implications. “People shouldn’t put their head in the sand. It is going to affect jobs,” he said. “AI will enhance some aspects of work, but also eliminate some jobs.” However, Dimon also stressed on the fact that JPMorgan is focused on retaining and redeploying employees whose roles are impacted by automation. “We’ll have more jobs, but there’ll probably be less jobs in certain functions,” Dimon added. “You’re better off being way ahead of the curve,” Dimon added.
AI embedded across JPMorgan
Dimon also revealed that JPMorgan has been integrating AI since 2012. He said that AI now touches every part of the bank starting from rest and fraud detection to marketing and customer service. The bank also used AI for idea generation. he bank’s proprietary large language model, trained on internal data, is used by 150,000 employees weekly. “It’s quite productive,” Dimon noted. “Our managers and leaders have to do it.”
Big AI bets under scrutiny
Dimon’s remakes come at a time when skepticism is growing about the massive corporate spending spree on AI. Meta is planning to spend around $600 billion on AI infrastructure by 2028. On the other hand, OpenAI and Oracle have announced a $500 billion data center project dubbed Stargate.A recent Goldman Sachs report warned that many firms investing billions in AI have yet to see measurable returns. “AI technology is exceptionally expensive,” said Jim Covello, head of global equity research at Goldman Sachs. “Even basic summarization tasks often yield illegible and nonsensical results.”
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