"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.""
"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."
JPMorgan spends about $2 billion per year on AI and identifies approximately $2 billion in direct cost savings from those investments, driven by reduced headcount, time savings, and increased efficiency. AI tools have been in use since 2012 and are embedded across risk, fraud detection, marketing, customer service, and idea generation. An internal large language model trained on company data is used by about 150,000 employees weekly and is described as productive. The bank emphasizes retraining and redeployment as automation changes roles, acknowledging some job losses in certain functions while expecting new opportunities. Investors remain skeptical about large AI bet payoffs.
Read at Business Insider
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