JPMorgan Chase: AI trimmed up to 40% staff in parts
JPMorgan Chase says AI has trimmed its staff by up to 40% in certain parts of the business this year.
CEO Jamie Dimon is not worried about being left behind. He pointed out that pretty much every bank is using AI these days to boost customer service, and it does not give anyone a huge advantage or change profits much.
JPMorgan Chase shifts hiring toward tech
Affected employees have been offered new roles as part of a restructuring, with the bank now hiring more for tech-focused positions and less for traditional banking jobs.
JPMorgan is running nearly 1,000 AI use cases, from fraud detection to marketing, supported by a massive nearly $20 billion tech budget.
Even with these changes, the bank's net income jumped 41% this quarter to $21.2 billion, thanks to investment gains and higher banking fees.
CFO Jeremy Barnum noted that while AI expenses are small now, they will likely grow later this year.