JPMorgan CEO Jamie Dimon’s annual letter to shareholders, released on Monday, touted the firm’s record $162.4 billion revenue in 2023 and commitment to shareholders while also zooming out to broader economic and technological issues — like the shrinking market of publicly traded companies in the U.S. and the pivotal role of AI.
In an update on specific issues facing JPMorgan, Dimon brought up AI’s impact on the company.
“While we do not know the full effect or the precise rate at which AI will change our business — or how it will affect society at large — we are completely convinced the consequences will be extraordinary,” Dimon wrote, comparing AI to innovations like the steam engine, electricity, and the Internet.
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JPMorgan began using AI over a decade ago and first mentioned it to shareholders 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 enhance “virtually every job.”
AI may also “reduce certain job categories or roles, but it may create others as well,” 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 Cut Human Work By Almost 90%
Dimon later mentioned in the letter that the number of U.S. public companies has dropped to 4,000 from 7,300 in 1996. Meanwhile, private U.S. companies have grown nearly six times in number over the past 20 years, from 1,900 to 11,200 companies.
He stated that “the pressures to retreat from the public market are mounting,” calling attention to higher requirements for reporting information, shareholder activism, and increased public awareness about what’s happening within the company.
Dimon called for an alternative to the shareholder meeting, which he claimed was dominated by special interest groups. He didn’t mention any specific examples of alternatives but said that the company was “constantly talking” with investors.
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He also stated that the banking system is changing and facing new competition from private markets and fintech.
“Remember that many of these new players do not have the same transparency or need to abide by the extensive rules and regulations as traditional banks, even if they offer similar products — this often gives them significant advantage,” he wrote.
JPMorgan stated last month that an AI cashflow tool has helped some of its clients cut previously human-driven work by up to 90%.
Dimon has previously spoken about AI’s potential to improve the quality of life for human beings, stating that it could lead to fewer workdays and longer lifespans.
Related: JPMorgan CEO Jamie Dimon Says AI ‘Is Real’ and Will Eliminate the 5-Day Work Week
AI has also received backlash over the large swaths of training data it requires to advance, including possibly copyrighted data.