Jamie Dimon says AI already reduced jobs in some areas by 40% — but it's not making JPM dramatically cheaper to run

JPMorgan Chase CEO Jamie Dimon said Tuesday that artificial intelligence has already reduced jobs by 30% to 40% in some areas of the bank, but cautioned that the technology will not dramatically cut the bank's overall expenses due to competitive pressures. Dimon noted that most displaced workers were offered other roles, and that AI benefits will largely flow to customers rather than boost margins. The bank reported a 41% jump in net income to $21.2 billion, driven partly by a Visa investment gain.

JPMorgan has been able to cut jobs by as much as 40% in some parts of the bank thanks to AI, CEO Jamie Dimon https://www.businessinsider.com/jamie-dimon-succession-jpmorgan-ceo-president-politics-2026-7 said Tuesday. But investors hoping the technology will dramatically cut the bank's profit margins are likely to be disappointed. Analysts asked Dimon about AI gains during JPMorgan's second-quarter earnings call on Tuesday, when five major banks reported earnings and notched profit jumps. Dimon repeated that the technology won't suddenly shrink the firm's operational budget. "You don't uniquely benefit from AI," he said after being asked when AI will slow down the bank's growth in expenses. "In a competitive, capitalist world, we all will use AI https://www.businessinsider.com/tim-ryan-citi-tech-transformation-ai-citigroup-2026-7 to do a better job for the customers. We can't just say, 'Oh, it's going to increase our margins. We're going to keep that," he said. "If that were true, our margins would be 80% today because of computerization over the last 20 years." When another analyst asked whether AI would create a leaner JPMorgan down the line, Dimon said that the technology would lead to huge efficiency gains and some job cuts. "We have had discrete areas where we did reduce jobs by 30% or 40%," he said. "Most of those people were offered jobs elsewhere. So we do expect that." In May, Dimon said the bank will probably hire fewer bankers https://www.businessinsider.com/jamie-dimon-jpmorgan-ai-bankers-job-loss2026-5 in certain areas and "more AI people" down the line. JPMorgan, with its nearly $20 billion tech budget https://www.businessinsider.com/jpmorgan-tech-budget-ai-20-billion-jamie-dimon-2026-2 , already has almost 1,000 use cases, Dimon said, spanning from fraud protection, marketing, and note-taking. Yet he repeated that the main benefits will flow to the customer, rather than differentiating JPMorgan from its competitors, since most other banks are making similar investments. Jeremy Barnum, JPMorgan's chief financial officer, mentioned an AI-related expense that may balloon in the coming months: tokens. As of now, he said token expenses are "trivial" and will remain so through the end of 2026, but the bank is nonetheless "forecasting some meaningful acceleration in that number for the second half of the year." The question of token spending will remain an important question for JPMorgan, he said, as it continues to think about "using the right models for the right purpose." The firm can track individual engineers' AI usage, Business Insider previously reported https://www.businessinsider.com/jpmorgan-track-software-engineers-ai-use-dashboards-2026-4 . JPMorgan reported $21.2 billion in net income, up 41% from last year and boosted significantly by gains on an investment in Visa. As Dimon pointed out in a press release, each business posted record revenue this quarter, and investment banking fees rose to $3.3 billion, up 30% year-over-year, to their highest since 2021.