JPMorgan Chase (JPM) plans to hire fewer bankers in coming years as it relies more heavily on artificial intelligence (AI), says CEO Jamie Dimon.
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“There will be all different types of jobs, and I think we will be hiring more AI people and fewer bankers in certain categories, and it will make them more productive,” said Dimon at the bank’s China Summit in Shanghai.
JPMorgan Chase is the world’s largest commercial bank with assets under management (AUM) of more than $4 trillion. As such, the lender is viewed as a leader and trendsetter on Wall Street. Dimon’s comments play into concerns that AI will eliminate many white collar jobs in coming years.
Leading into AI Technology
Dimon acknowledged as much, saying at the conference that AI is likely to “reduce our jobs down the road.” JPMorgan currently has an annual attrition rate of about 10%, or roughly 30,000 employees, said Dimon. He added that the bank’s preference would be to redeploy workers whose jobs are impacted by AI or offer them early retirement rather than undertake big layoffs.
Dimon’s comments come as JPMorgan and other banks increase their investments in AI, reshaping workforces that have traditionally involved high-paying jobs for well-educated people. The comments also come days after British bank Standard Chartered (STAN) said it plans to eliminate 7,000 jobs as it seeks to replace “lower-value human capital” with AI.
Is JPM Stock a Buy?
JPMorgan’s stock has a consensus Moderate Buy rating among 16 analysts. That rating is based on nine Buy and seven Hold recommendations issued in the last three months. The average JPM price target of $336.23 implies 10% upside from current levels.
