JPM’s Jamie Dimon: Customers will be the ‘ultimate beneficiary’ of AI

JP Morgan Chase & Co. plans to continue its investments in AI while being cognizant of market cycles and a potential slowdown in the industry. “AI will always have its gives and takes,” Chief Executive Jamie Dimon said during today’s second quarter earnings call, adding that for certain organizations and the economy as a whole, investing in AI might mean not investing in other areas. [caption id="attachment_180203" align="alignright" width="300"] Jamie Dimon (Courtey/Bloomberg)[/caption] “We can’t project, [but] I do think that you might actually see a slowdown in growth in 2027 or 2028,” he said. Investments in new technologies such as AI can be expensive in the short run, but the bank expects the tech to improve its operating margins and drive deposits, he said. “We are going to use AI to do a better job for our clients,” Dimon said. “The ultimate beneficiary of AI will be our customers.” Dimon said that the bank has more than 1,000 use cases of AI including 50 essential use cases in its operations, including: Risk hedging; Notetaking; Fraud; Documentation; and Idea generation. The $4 trillion bank has always used new tech to make operations more efficient and AI is like a “mini revolution” to upgrade its tech operations, Dimon said. The bank reported $3.1 billion in tech, communications and equipment expenses in the second quarter, up 15% year over year. The bank also expects to continue its investment in AI and tech to compete with its peers, Dimon said. "Not just Goldman Sachs ... you've got Stripe and PayPal and CashApp and Block and Chime and SoFi and Revolut ... they're good and whe have to make certain investments to keep up with them," he said. The $3.6 trillion bank is deploying AI for: AI-driven robots to make check and documentation processes streamlined; Research and develop quantum computers that are compatible with AI, along with AMD and quantum computing firm Oxford Quantum Circuits ; and Know your customer/know your business and document analysis, to aid underwriters in becoming more efficient. BY THE NUMBERS: In Q2, the bank reported: Net income of $21.2 billion, up 41% year over year. Revenue of $57.3 billion, up 27.7 YoY; Active mobile users numbering 63.7 million, up 6% YoY; and Headcount of 320,560, up 1% YoY. OF NOTE: Marianne Lake , former president of consumer banking and touted by some to be in the running to be Dimon’s successor, left the bank last month. Troy Rohrbaugh and Doug Petno were promoted to chief executives of consumer banking and commercial banking respectively. Who replaces the CEO when he retires is a “critical question,” Dimon said. He said his successor needs to “be good at management, you want to be good at people, you want to be analytical, you want to be detailed, you want to be curious, you would want to have a soul.” Dimon also said he might be around for “a few years,” but that the decision rests with JPM’S board. JPM’s [NYSE: JPM] shares were up 5% and trading at $339 at 12:30 pm ET today. The bank has a market capitalization of $910 billion. Register here for the FinAi Lending Summit, set for Oct. 7-8 in Las Vegas.

JPM’s Jamie Dimon: Customers will be the ‘ultimate beneficiary’ of AI

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JPM’s Jamie Dimon: Customers will be the ‘ultimate beneficiary’ of AI

$4T bank reports $3.1B in tech and equipment expenses, up 15% YoY

New York leads nation in moratorium on new big data centers

AI paying off at Bank of America as operating leverage soars above target

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