JPMorgan CEO Dimon on AI, Jobs and the Government Shutdown

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Jamie Dimon said JPMorgan Chase & Co. spends $2 billion a year on developing artificial intelligence technology, and saves about the same amount annually from the investment.  “We know that it’s got to billions of cost savings and I think it’s the tip of the iceberg,” the bank’s chief executive officer said Tuesday in a Bloomberg TV interview. Dimon has consistently touted the opportunities offered by AI, even if it eliminates some jobs. He has said his bank already has hundreds of use cases for the technology, which will likely grow, and has touted its ability to help humans cure cancer and move to shorter work weeks. Dimon spoke to Bloomberg's Tom Mackenzie in London on Tuesday. In a letter to shareholders last year, Dimon likened AI technology to the “printing press, the steam engine, electricity, computing and the internet.”  The New York-based bank has thousands of employees working on AI, and Dimon has said previously that the technology will be embedded in every one of the company’s processes, including trading, research, equity hedging and customer service, often as a sort of co-pilot.  AI is likely to make dramatic improvements in workers’ quality of life, but as with every new technology, some jobs will also be lost, Dimon said in the letter - JPMorgan Chase & Co. is leading a roughly $5 billion loan financing to support Qualtrics International Inc.’s purchase of health-care survey firm Press Ganey Forsta, the latest in a wave of big deals to hit the leveraged finance market. Silver Lake-owned Qualtrics is buying out data and analytics provider Press Ganey in a transaction valued at $6.75 billion and hopes to close the deal in the coming months. Discussions are still ongoing and some terms of the financing could change, according to people with knowledge of the matter. Representatives for JPMorgan, Silver Lake, Qualtics and Press Ganey declined to comment. Banks have scored a number of big wins in recent weeks to finance large mergers and acquisitions. Debt-sales tied to M&A, which are more lucrative than repricing and refinancing deals, have been on the rise following a slump since the Federal Reserve’s 2022 rate-hike cycle. JPMorgan is also leading a $20 billion deal to finance the $55 billion take-private of Electronic Arts Inc., the biggest leveraged buyout of all time. That transaction has underwriters clamoring for a role to win some of the most attractive fees in investment banking. Elsewhere, a group of banks led by Goldman Sachs Group Inc., is wrapping up a $5.5 billion leveraged loan sale to help finance Thoma Bravo’s acquisition of human-resources software provider Dayforce Inc. JPMorgan is among a number of firms that have provided a debt commitment for the Qualtrics deal, according to a statement. Other banks on the deal are BMO Capital Markets Corp., Citigroup Inc., Deutsche Bank AG, Goldman Sachs, KKR Capital Markets, Mizuho Financial Group Inc., Morgan Stanley, RBC Capital Markets, UBS Group AG and Wells Fargo & Co. -------- Watch Bloomberg Radio LIVE on YouTube Weekdays 7am-6pm ET WATCH HERE: http://bit.ly/3vTiACF Follow us on X: https://twitter.com/BloombergRadio Subscribe to our Podcasts: Bloomberg Daybreak: http://bit.ly/3DWYoAN Bloomberg Surveillance: http://bit.ly/3OPtReI Bloomberg Intelligence: http://bit.ly/3YrBfOi Balance of Power: http://bit.ly/3OO8eLC Bloomberg Businessweek: http://bit.ly/3IPl60i Listen on Apple CarPlay and Android Auto with the Bloomberg Business app: Apple CarPlay: https://apple.co/486mghI Android Auto: https://bit.ly/49benZy Visit our YouTube channels: Bloomberg Podcasts: https://www.youtube.com/bloombergpodcasts Bloomberg Television: https://www.youtube.com/@markets Bloomberg Originals: https://www.youtube.com/bloomberg Quicktake: https://www.youtube.com/@BloombergQuicktake