JPMorgan’s Dimon Positions AI as Competitive Banking Battleground

JPMorgan Chase’s latest company update, on Monday (Feb. 23)  underscored that the firm’s technology agenda now extends well beyond internal productivity initiatives.

Across the presentation and the question-and-answer session, executives consistently positioned artificial intelligence as a central component of competitive strategy, client engagement, with a long-term investment horizon.

Management framed AI as an embedded capability influencing lending decisions, pricing models, customer interactions and infrastructure modernization.

The discussion featured several members helming various departments at the firm, including Chairman and Chief Executive Officer Jamie Dimon, Chief Financial Officer Jeremy Barnum, Consumer and Community Banking CEO Marianne Lake, Asset and Wealth Management CEO Mary Callahan Erdoes, Commercial and Investment Bank Co-CEO Doug Petno, and Commercial and Investment Bank Co-CEO Troy Rohrbaugh.

Their remarks collectively reflected how AI initiatives are being distributed across business lines, while other commentary took note of at least some risks that bear watching in private credit.  The broader macro backdrop has shown consumers to be stable across a variety of metrics.

Dimon on AI and Competitive Pressure

Dimon situated AI within a competitive banking landscape that continues to attract both established financial institutions and specialized entrants.

“My view,” he told the audience, “is that we will be a winner, but at the end of the day, if you look at 100 areas, we’ll be a winner in 75 and maybe a loser in 25.

“There’s some very smart people out there cherry picking very narrow parts of the ecosystem.”

He emphasized that JPMorgan’s approach centers on applying technology to improve customer outcomes. “For us, we are going to deploy AI as fast as we can to do a better job for our customers. That’s what we are going to do,” the CEO said.

Dimon also acknowledged the longstanding challenge of quantifying returns on technology investment, with a nod to the fact that some initiatives “are revenue enhancements, some are cost avoidance, some are [for] risk and fraud.”

AI Across Business Lines

Other executives elaborated on how AI capabilities are being operationalized. Petno stressed that JPMorgan’s AI development reflects a multiyear trajectory rather than a recent shift.

“We didn’t just start this work in the last couple years,” Petno said. “We had a center of excellence for machine learning in AI over the last decade.”

Within the Commercial and Investment Bank, Petno pointed to applications designed to improve client outcomes. “One big standout category is just giving value back to clients. Think agentic commerce, better cash flow and analytics.”

Erdoes addressed the interplay between automation and advisory functions, cautioning that algorithmic outputs still require professional judgment.

Barnum highlighted the scale of AI deployments across the firm. “Machine learning and analytical AI have been driving improvements in revenue and expense for many years,” he said, adding that JPMorgan has doubled the number of use cases in production this year.

Barnum detailed the firm’s projected technology expenditures, noting that costs are expected to reach approximately $19.8 billion this year, up about 10% from last year.  Within that number, said the CFO, “we are spending $1.2 billion more this year on major projects” including “platform buildouts like Apple Card.”

Risk, Software and Private Credit

Executives also addressed potential areas of vulnerability. Barnum acknowledged emerging uncertainties tied to AI’s broader economic effects. There’s the potential risk in the software industry from the advances in AI, executives stated, but they contended that the bank’s exposure remains limited.

Rohrbaugh commented on private credit dynamics within a shifting macro environment, noting that there is “a lot of capital in the private credit ecosystem. We see lots of deployment. We see lots of people chasing opportunities. So this hasn’t changed that overall ecosystem, but we’re watching it closely. We’re very risk disciplined. We’re comfortable with where we are.”

He emphasized risk discipline. “We’re very thoughtful about the risk we take.”

Core Banking Guidance

Alongside technology themes, management reiterated expectations for deposits, lending and credit performance. Barnum said the firm continues to expect card net charge-offs of roughly 3.4%.

“The labor market is the critical factor to watch,” he said. Lake addressed evolving deposit behavior as consumers increasingly optimize returns. “Yield optimization is not a new phenomenon,” she said. “Moving money is increasingly easy.”

State of the Consumer

Executives consistently characterized consumer conditions as steady. Barnum observed that spending patterns across income segments remain within historical ranges.

“What we’re seeing in the data is, while there is a difference, the difference is not outside the pre-pandemic range,” Barnum said. “Lower-income consumers remain resilient.”