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JPMorgan CEO Jamie Dimon is doubling down on tech spending, refusing to cut back despite a planned $9 billion increase by 2026. He stressed that falling behind in technology means losing to fintech rivals. While acknowledging competitive sensitivity, Dimon revealed their $2 billion AI investment is already breaking even, calling it just the beginning.
Jamie Dimon is done apologizing for JPMorgan's massive tech bill. During the bank's Tuesday earnings call, the CEO made it crystal clear that he won't sacrifice competitive advantage to hit expense targets, even as shareholders questioned a planned $9 billion spending increase in 2026.The blunt message came after Wells Fargo analyst Mike Mayo pressed him for details on how the bank would recover its AI investments. Dimon's response wasn't a detailed breakdown—it was a warning. "We're not going to try to meet some expense target, and then 10 years from now, you'd be asking us a question, how did JPMorgan get left behind?" he said, his tone decidedly firm.JPMorgan is already spending roughly $18 billion annually on technology, with AI becoming embedded across trading, research, customer service, and everything in between.
The bank employs thousands on AI initiatives alone. Yet Dimon refused to provide granular details on returns, citing competitive sensitivity. "Part of it is to trust me, I'm sorry," he told investors, injecting a rare moment of levity into an otherwise tense exchange.
Wall Street's new reality: Banks now compete with tech giants
What makes Dimon's stance remarkable is his unvarnished comparison. JPMorgan isn't just battling traditional rivals anymore. It's competing against fintech upstarts like Stripe, SoFi, and Revolut—companies that have redefined customer expectations around speed and personalization.
For Dimon, this means the old playbook no longer applies."You need to be the best in the world in tech. That drives investment, it drives margin, it drives competition," he explained. The message was unmistakable: underspend on technology, and you're slowly dying in a fintech-dominated landscape.
JPMorgan's $2 billion AI bet already breaking even
Earlier this month, Dimon offered more encouraging numbers. He revealed that JPMorgan's $2 billion annual AI spend is now generating roughly equivalent savings—a milestone he called "just the tip of the iceberg."
The bank's hundreds of AI use cases range from internal operations to external-facing tools.The reality check, however, came from market reaction. JPMorgan's stock tumbled over 4% Tuesday after the earnings announcement, reflecting investor jitters about whether the spending spree will actually deliver promised returns. Whether Dimon's faith-based approach to tech investment persuades Wall Street remains to be seen.
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