JPMorgan Chase CEO Jamie Dimon believes that while AI will eliminate some jobs, the tech cycle will produce more openings amid a multi-trillion-dollar buildout.
In a new Fox Business interview, Dimon says the softening labor market this year is due to the cautious stance of Corporate America to hire new employees.
The JPMorgan chief executive notes that AI productivity gains have nothing to do with the weak US labor market.
“And when you talk to businesses, they’re going to be a little more cautious hiring. That’s not because of AI. That’s just because they want to do more with less, and they look at their order books, et cetera. And look, I don’t think AI is going to dramatically reduce jobs, like unbelievably, next year. I think AI is real… But it will eliminate jobs. That doesn’t mean that people won’t have other jobs… I also don’t think you’re going to see it all happen this year.”
He says the near-term impact tilts toward job creation because the foundational infrastructure has to be built from scratch.
“If you look at this year, you have a huge amount of construction that needs to take place. And to do that construction, you need roads and trucks and drivers. You need servers, you need fiber, you need all that. So it’s going to cause probably more jobs in the short run in total.”
Dimon also cites internal research that tallies the scale of the spending required.
“But I heard we did a research report about how much, it’s $5 trillion, and that includes everything, the data centers, the servers, the chips, the fiber. It doesn’t necessarily include the power plant or the transmission lines.”
Comparing the AI boom to the dot-com era, Dimon notes that today’s winners will not necessarily come out on top in the future.
“So I look back at the internet a little bit. A lot went into it. There was a lot of success. A lot of people didn’t make it. It turned out differently from what people thought when it started. And I think you probably get some of that here.
There will be big winners. You remember from the Internet, you got Google and Facebook and Amazon and tons of others, and whole new technologies. But it took a while for some other things to come in, like the iPhone or something.
So here it will eventually pay off. Who pays off, who the winners are, who the losers are, which models win, which new chips? I’m not talking about the chips today, but the chips in five years. We don’t know how it’s all gonna play out, but AI itself is real.”
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