Jamie Dimon says JPMorgan has to invest in AI or risk getting 'left behind'

Core Viewpoint - JPMorgan Chase is significantly increasing its spending on technology and artificial intelligence to remain competitive against both traditional banks and fintech companies, with a focus on long-term growth rather than short-term expense targets [1][2][3]. Spending Strategy - JPMorgan plans to spend approximately $9.7 billion more in 2026 compared to 2025, reflecting a commitment to investing in technology and AI [2]. - The annual technology budget for JPMorgan is around $18 billion, indicating a substantial investment in tech initiatives [5]. Competitive Landscape - CEO Jamie Dimon emphasized that JPMorgan is not only competing with traditional Wall Street rivals but also with fintech companies like Stripe, SoFi, and Revolut, which he acknowledged as strong competitors [2]. - The bank's strategy includes developing an in-house AI platform, Proxy IQ, to replace external proxy advisors for shareholder voting, showcasing its commitment to leveraging technology for operational efficiency [4]. Future Outlook - Dimon sees significant opportunities in AI and believes that increased spending is essential for the bank's growth, despite concerns about the scale of expenditures [3]. - While AI spending is expected to increase, Dimon noted that it is not the primary driver of overall expenditure growth, but rather a component of a broader investment strategy aimed at enhancing efficiency and competitiveness [4].