The CEO of JPMorgan Chase says artificial intelligence is in the midst of a massive buildout that could be derailed by bad government policy.
In his Annual Letter to Shareholders, Jamie Dimon outlines the scale of investment flowing into AI, along with risks and potential government response.
Starting with AI CapEx, Dimon says the figure exploded by hundreds of billions of dollars in just one year.
“Huge increase in AI-driven capital spending and construction by the five hyperscalers. In 2025, this number was $450 billion, and in 2026, it will be approximately $725 billion. While AI will clearly drive productivity, which is generally good for inflation in the long run, all of this spending is probably inflationary in the short run.”
On top of the short-term inflation impact, the JPMorgan Chase CEO believes that companies and the government should gear up for AI-driven cybersecurity risks.
“AI will also introduce serious new risks — from deepfakes and misinformation to cybersecurity vulnerabilities. These risks are real, but they are manageable if companies, regulators and governments prepare.”
Dimon emphasizes that the response to cybersecurity risks will be critical, warning against two opposing policy failures that could stifle AI innovation.
“The worst mistakes we can make are predictable: overreact at the first serious incident and regulate out important innovation or underreact and fail to learn from what went wrong. The right approach requires rigorous preparation in advance, an honest assessment when things go wrong — and they will — and discipline to fix what’s broken without destroying what works.”
Last week, Dimon revealed that the single biggest threat from AI is not massive job disruption but nation-state actors and hackers using the technology to amplify and scale attacks.
Photo by Markus Spiske on Unsplash
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