JPMorgan cut jobs by as much as 40% in some teams due to AI in 2026, but CEO Jamie Dimon makes it clear that 'you don't uniquely benefit from AI, we all use AI to …'

JPMorgan Chase has revealed that artificial intelligence (AI) has helped the bank reduce headcount by up to 40% in some business areas, yet CEO Jamie Dimon remains unconvinced. He stressed that AI is unlikely to give America’s biggest bank a lasting competitive advantage, as other companies are adopting the technology as well. Speaking during JPMorgan’s second-quarter earnings call, Dimon said investors should not expect AI alone to significantly increase the bank’s profit margins.“You don’t uniquely benefit from AI,” Dimon said after being asked when AI would begin slowing the bank’s expense growth. He explained, “In a competitive, capitalist world, we all will use AI 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. If that were true, our margins would be 80% today because of computerisation over the last 20 years.”

JP Morgan CEO Jamie Dimon on how AI led to job reductions in some teams

Responding to another question about whether AI would make JPMorgan a leaner organisation, Dimon said the technology has already led to workforce reductions in certain parts of the bank.“We have had discrete areas where we did reduce jobs by 30% or 40%. Most of those people were offered jobs elsewhere. So we do expect that,” he noted.Earlier, in May, Dimon said that JPMorgan is likely to hire fewer bankers in some areas while increasing recruitment for AI-related roles. The bank currently has nearly 1,000 AI use cases across areas, including fraud detection, marketing and note-taking, supported by an annual technology budget of nearly $20 billion, according to Dimon.

JP Morgan’s AI spending expected to increase

JPMorgan Chief Financial Officer Jeremy Barnum said the bank expects spending on AI tokens to increase in the second half of the year. He said token-related expenses are currently “trivial” and are expected to remain so through the end of 2026, but the bank is “forecasting some meaningful acceleration in that number for the second half of the year.”Barnum added that token spending will remain an area of focus as the bank continues evaluating “using the right models for the right purpose.”JPMorgan reported net income of $21.2 billion for the second quarter, up 41% from a year earlier, supported in part by gains on its investment in Visa. The bank also reported investment banking fees of $3.3 billion, a 30% year-over-year increase.