AI efficiency improvement strategy revealed, JPMorgan Chase (JPM.US) plans to spend $18 billion to increase technology investment in 2025

The Zhitong Finance App learned that J.P. Morgan Chase (JPM.US), the bank with the largest assets in the US, said in an Investor Day event presentation document on Monday that it plans to invest about 18 billion US dollars in technology expenses in 2025. The bank expects investment in technology and artificial intelligence to improve employee efficiency and support continued growth in business volume.

The company's overall cost guidelines were in line with when the first quarter earnings report was released, and the total expenditure for 2025 is still expected to be around US$95 billion. The bank also reiterated the 2025 guidelines: net interest income after excluding market business is about US$90 billion, and the group's revenue is about US$94.5 billion.

According to the presentation, Chief Financial Officer Jeremy Barnum will say, “While continuing to invest cyclically, we always focus on improving efficiency. As the number of employees grew, we saw an opportunity to build a lean organization. ” Over the past five years, the bank's compound annual employee growth rate was about 4%.

Despite focusing on improving efficiency, the bank promised to “always maintain sufficient resource allocation to ensure the safe and steady operation of the enterprise” and continue to invest in “high certainty” areas such as bankers, advisors, and branches.

Barnum will also point out that J.P. Morgan has calculated provisions based on the current level of uncertainty. Credit loss reserves for the consumer banking business reached US$16.9 billion in the first quarter and US$10.5 billion for the wholesale business.

“With our current level of sufficient capital, we are capable of securing franchises and growing in all environments. ” According to the report for the first quarter of 2025, its common share Tier 1 capital (CET1) reached US$280 billion, of which surplus capital exceeding regulatory requirements (including regulatory buffer capital) reached US$57 billion.