Jamie Dimon, CEO of JPMorgan annual letter to Shareholders, released Monday, touts the company’s record 2023 revenue of $162.4 billion and its commitment to shareholders, while focusing on broader economic and technology issues, like the shrinking of the market for publicly traded companies in the United States and the central role of AI.
In an update on specific issues facing JPMorgan, Dimon discussed the impact of AI on the company.
“While we do not know the total effect or the precise speed at which AI will change our business – or how it will affect society as a whole – we are completely confident that the consequences will be extraordinary,” Dimon wrote, comparing AI to innovations like AI. steam engine, electricity and the Internet.
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JPMorgan began using AI more than a decade ago and first told shareholders about it in 2017, according to Dimon’s letter. The company currently employs more than 2,000 AI experts and is experimenting with generative AI in customer service, software engineering, and operations.
In the future, Dimon predicts that AI could improve “virtually every job.”
AI can also “reduce some job categories or roles, but it can also create others,” Dimon wrote, adding that the company would “aggressively retrain” existing employees if their jobs were affected by AI.
Related: JPMorgan says its AI cash flow software has reduced human labor by almost 90%
Dimon later mentioned in the letter that the number of U.S. public companies had fallen to 4,000 from 7,300 in 1996. At the same time, the number of U.S. private companies has increased sixfold over the past 20 years, from 1,900 to 11,200 companies.
He said “pressures to exit the public market are growing,” drawing attention to higher reporting requirements, shareholder activism and increased public awareness of what is happening. happens within the company.
Dimon called for an alternative to the shareholders’ meeting, which he said was dominated by special interest groups. He did not mention specific examples of alternatives, but said the company was “in constant discussions” with investors.
He also said the banking system is evolving and facing new competition from private markets and fintech.
“Remember, many of these new players don’t have the same transparency or need to follow detailed rules and regulations as traditional banks, even if they offer similar products – this often gives them an advantage significant,” he wrote.
JPMorgan said last month that an AI-powered treasury tool had helped some of its clients reduce expenses. work previously directed by humans up to 90%.
Dimon has previously spoken on the potential of AI to improve the quality of life of humans, arguing that it could lead to shorter working days and longer lifespans.
Related: JPMorgan CEO Jamie Dimon Says AI is ‘Real’ and Will Eliminate the 5-Day Work Week
AI has also faced backlash across large swaths of training data this requires moving forward, possibly including protected by copyright data.
