JPMorgan Chase is trying to use AI to cut your staff.
On the Annual Investor Day of the Company on Monday, the CEO of Banking of Consumer and Community of JPMorgan, Marianne Lake, 56, gave a presentation that predicts that AI would allow the bank to reduce the number of employees by 10% in the departments of operations and account services. The Operations Division processes states and payments, while the Accounts Services Unit manages the transactions of the day.
Related: JPMORGAN says that its Cash flow software reduces human work by almost 90%
Lake, who runs Chase Bank and his credit card business, said that 10% was a modest estimate: the bank will probably love “deliver more” in account reductions.
“It would take the presentation of this projection and that we will deliver more,” said Lake, for Business intern. She did not reveal a timeline for when the workforce reductions would occur or what rolls would have an impact.
Marianne Lake. Photographer: Jin Lee/Bloomberg through Getty Images
JPMorgan’s financial director Jeremy Barnum, 52, revealed in the same investor day event as the bank would spend less than $ 95 billion in the hiring this year, since AI makes the operations more efficient. That is a drop of $ 200 million in hiring efforts in 2023 and $ 100 million in 2024.
“We are asking people to resist the growth of personnel where possible and increase their focus on efficiency,” said Barnum, for BI. “It is not just fans who are helped by these [AI] Tools. It is something incredible, and we have great hope for efficiency gain. “
JPMorgan staff has grown in recent years, swelling around 20% of 255,350 employees in 2020 to approximately 317,000 in 2024. At the same time, the net income of the bank has doubled from $ 29.13 billion in 2020 to a $ 58.5 record.
Related: The JPMorgan Chase CEO, Jamie Dimon, is not worried that AI takes care of the jobs, here is why
Who will take charge as CEO of JPMorgan?
On JPMorgan investors day, investors were looking at executives who could assume Jamie Dimon’s CEO position when they retire in the next four years.
According to The Wall Street JournalLake is a main contender for the CEO place. She began at the bank as an accountant and possible became financial director from 2013 to 2019, before being in her current position.
According to the reports, the other two candidates for CEO are the co -director of the corporate and investment bank of JPMorgan, Doug Petno, 59, and Troy Rohrbaugh, 55.
Petno began as an investment banker in JPMorgan before becoming the CEO of Acober Banking from 2012 to 2024. Rohrbaugh joined JPMorgan in 2005 as managing director and previously he was head of Macro Markets, includes the foreign exchanges of the bank.
Related: The JPMorgan Chase CEO, Jamie Dimon, shares four tips for leaders
Dimon said on Monday at the investor event that he still intends to retire as CEO in the next four years, he thought that he and JPMorgan have not yet publicly announced a successor.
“What we have told you is that the Board has intent … to think about the succession, and we should be doing that,” said Dimon, for From Barron.
Dimon has led the bank since 2006. JPMorgan’s shares have shot at almost 200% in the last five years.
JPMorgan Chase is trying to use AI to cut your staff.
On the Annual Investor Day of the Company on Monday, the CEO of Banking of Consumer and Community of JPMorgan, Marianne Lake, 56, gave a presentation that predicts that AI would allow the bank to reduce the number of employees by 10% in the departments of operations and account services. The Operations Division processes states and payments, while the Accounts Services Unit manages the transactions of the day.
Related: JPMORGAN says that its Cash flow software reduces human work by almost 90%
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