JPMorgan Chase CEO Jamie Dimon warns that a rapid wave of AI-driven job disruption could hit faster than past technological shifts.
Speaking at the Hill and Valley Forum, Dimon says the pace of change may leave little time for workers and institutions to adjust.
According to the JPMorgan chief executive, AI adoption will be fundamentally different from prior innovations that unfolded over decades.
“It is unbelievable, AI. It’s coming. It’s going to come quickly. Most technologies took a long time to roll in: the internet, electricity, tractors and farms. And society had a chance to adjust and move people to other jobs, and it did. It did quite well.
When we look at the productivity of America, from getting off the farms and electricity, this one may be quicker. And we know it’s quicker. In fact, we’re starting to see examples that it could happen very, very quickly. So therefore, can we accommodate the people if they lose their jobs quickly enough?”
He also says the speed of displacement could create broad societal strain if not addressed in advance.
“We should be prepared for it… If it happens to everybody, all of a sudden, it creates unemployment. That’s a big problem for society.”
Dimon suggests a framework to address the incoming wave of AI-driven job displacement that requires the collaboration of the private and public sectors.
“I don’t know the answer yet, but I suggest the following. It can’t be just the government. It’s going to have to be business, but the government can create a system of incentives that the business does the right thing to retrain people, early retirement, moving people…
Some of the new jobs will be far better than the old jobs, by the way. It’s just that they don’t know how to do them. So if we have the right system in place, we can accommodate it much quicker.”
He closes with a warning that if US companies fail to equip workers with AI skills, firms in other countries will gain an edge by doing so.
“But you can’t stick your head in the sand. If we don’t do it here, it’s going to happen overseas, and so companies are going to have to compete. And the ones who stick their heads in the sand will lose.”
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