'We won't hide our head in the sand': 5 predictions from JPMorgan CEO on artificial intelligence
AI adoption will take much less time than other technological revolutions and the labor market may not have time to adapt to it, warns the head of the largest market value bank
Investments in AI have not reached the stage of a speculative bubble and can still bring good returns, says the head of JPMorgan / Photo: Shutterstock.com
Artificial intelligence will be both "transformational" for productivity and create new risks, says Jamie Dimon, CEO of the world's most valuable bank, JPMorgan. Here are key talking points about artificial intelligence from his annual letter to investors, published April 6:
- AI is a fundamental technological game changer that will really affect many sectors, writes Dimon. In his view, the technology will impact "virtually every function, application and process." With that in mind, JPMorgan is determined to incorporate AI into its operations. "We will not hide our head in the sand," Dimon emphasized.
- In the long term, AI will lead to productivity growth and a shorter work week in developed countries, according to the head of JPMorgan. Some jobs will disappear, but new ones will appear, for example, in cybersecurity, the letter says.
However, AI is likely to significantly outpace other technological revolutions - like the invention of electricity or the Internet - in terms of speed of adoption, Dimon warns. What used to take decades is now taking a few years. This creates a risk that the labor market will not have time to adapt, says the bank's head. According to him, the state and business need to help people who are at risk of job loss with retraining or encourage them to move or retire early.
"We know that there are serious labor shortages in many well-paying occupations among both white-collar and blue-collar workers"
- Investments in AI have not reached the stage of a speculative bubble and can still bring good returns, Dimon believes. But it is impossible to say who exactly will lose or gain from AI, he writes: the situation will remain fluid, with new AI models entering the market, and it will not be possible for any one person to dominate it.
- The introduction of AI will create serious new risks, from the spread of diplomacy and misinformation to cybersecurity vulnerabilities, which will be one of the biggest challenges for large corporations, Dimon writes. Businesses and regulators must prepare in advance for these risks to materialize, he emphasizes.
"It will take careful advance preparation, followed by an honest assessment of the situation the moment something goes wrong - which is bound to happen - and the discipline to fix it without destroying working tools."
The worst mistake, according to Dimon, would be either overreacting to a potential incident and blocking important innovations, or underreacting and failing to learn from what happened.
- AI, like other technological disruptions, will have second- and third-order consequences that can greatly affect society, Dimon writes. As an example, the proliferation of automobiles has fostered suburbs and suburban shopping centers, while the invention of the Internet has led to cell phones, apps and social media. The head of JPMorgan urges to monitor such transformations and try to anticipate what so far seems "unpredictable."
This article was AI-translated and verified by a human editor
