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Dimon says AI cut up to 40% of jobs at JPMorgan
Jamie Dimon said AI has eliminated 30% to 40% of jobs in some JPMorgan units, but competition means the savings won’t meaningfully lift margins.
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AI has already eliminated 30% to 40% of jobs in some parts of JPMorgan Chase, according to CEO Jamie Dimon, who told analysts on the bank’s second-quarter earnings call on Tuesday that the technology is delivering major efficiency gains inside the firm.
But Dimon also pushed back on the idea that AI will translate into sharply higher profit margins for banks. In a competitive market, he said, every major institution will use the technology to improve service, which limits any one bank’s ability to keep the gains for itself.
“You don’t uniquely benefit from AI. If that were true, our margins would be 80 percent today because of computerisation over the last 20 years.”
When asked whether AI would make JPMorgan structurally leaner over time, Dimon said the bank is seeing job reductions in some areas, though most affected employees have been offered other roles inside the company.
The comments landed the same day it emerged that Wall Street’s largest banks collectively cut 15,000 jobs in a single quarter earlier this year while still posting record profits. JPMorgan reported more than $21 billion in net income for the second quarter, up 41% from a year earlier, helped significantly by a multibillion-dollar gain on an investment in Visa. Every business line posted record revenue, while investment banking fees climbed 30% year over year to their highest level since 2021.
JPMorgan’s nearly $20 billion technology budget now supports almost 1,000 AI use cases, including fraud protection, marketing, and note-taking. In May, Dimon said the bank would likely hire fewer bankers and more AI specialists. The company has also recruited senior AI talent from rivals including Nomura, and 150,000 of its more than 300,000 employees already use an internal large language model each week.
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Chief Financial Officer Jeremy Barnum highlighted another cost to watch: token spending. He said the cost of running AI models is currently trivial and should remain so through the end of 2026, but JPMorgan expects meaningful acceleration in the second half of the year.
Barnum said token costs will matter more as the bank decides which models fit which tasks. For investors, the message from the earnings call was blunt: AI is cutting roles and saving money, but in banking, much of that benefit is likely to be competed away rather than showing up as fatter margins.
Enterprise Editor
Marcus follows the money. He covers enterprise software, cloud architecture, and the tectonic shifts in Big Tech strategy. He translates dense earnings calls and complex M&A activity into actionable insights about where the industry is actually heading. If a tech giant makes a silent pivot, Marcus is usually the first to notice.
via TNW
