JPMorgan Chase CEO Jamie Dimon issued his annual shareholder letter and provided an incremental update on the company's artificial intelligence efforts as well as private cloud buildout.
In the letter, Dimon covered the expected interest rate outlook and geopolitical uncertainty, but also spent a good bit of space on AI, generative AI and transitioning to the cloud, which enables JPMorgan Chase to roll out services faster.
JPMorgan Chase: Digital transformation, AI and data strategy sets up generative AI (download PDF) | JPMorgan Chase: Why we're the biggest tech spender in banking
Here are some of the technical highlights that update JPMorgan Chase's AI strategy as outlined in Constellation Research's case study (download PDF).
- AI's big picture. Dimon said: "We are completely convinced the consequences will be extraordinary and possibly as transformational as some of the major technological inventions of the past several hundred years: Think the printing press, the steam engine, electricity, computing and the Internet, among others."
- JPMorgan Chase has 2,000 AI and machine learning experts and data scientists.
- The company has more than 400 use cases in production. "We're also exploring the potential that generative AI (GenAI) can unlock across a range of domains, most notably in software engineering, customer service and operations, as well as in general employee productivity," said Dimon, who added that generative AI will help the company "reimagine entire business workflows." Also: BT150 CXO zeitgeist: Data lakehouses, large models vs. small, genAI hype vs. reality
- JPMorgan Chase will continue to invest in AI and "many of these projects pay for themselves." Dimon added that AI has the potential to augment most jobs, reduce roles and create new ones.
- To enable new AI capabilities, JPMorgan Chase has to migrate its data estate to the public cloud. "These new data platforms offer high-performance compute power, which will unlock our ability to use our data in ways that are hard to contemplate today," said Dimon.
- AI is being incorporated into JPMorgan Chase's risk and control frameworks to counter threats.
- Multicloud is critical to avoid lock-in. Dimon said JPMorgan Chase's cloud plans will include multiple clouds--private and public.
- JPMorgan Chase is building 4 new private cloud data centers for $2 billion.
- Most workloads and data will be in public and private clouds. "To date, about 50% of our applications run a large part of their processing in the public or private cloud. Approximately 70% of our data is now running in the public or private cloud. By the end of 2024, we aim to have 70% of applications and 75% of data moved to the public or private cloud," said Dimon. "The new data centers are around 30% more efficient than our existing legacy data centers. Going to the public cloud can provide 30% additional efficiency if done correctly (efficiency improves when your data and applications have been modified, or “refactored,” to enable new cloud services)."
Related: Middle managers and genAI | Why you'll need a chief AI officer | Enterprise generative AI use cases, applications about to surge | CEOs aim genAI at efficiency, automation, says Fortune/Deloitte survey
