JPMorgan Chase is trying to use AI to cut down its headcount.<\/p>\n
At the company’s annual investor day<\/a> on Monday, JPMorgan’s CEO of consumer and community banking, Marianne Lake, 56, gave a presentation predicting that AI would allow the bank to reduce employee numbers by 10% in the operations and account services departments. The operations division processes statements and payments, while the account services unit manages day-to-day transactions.<\/p>\n Related: <\/b>JPMorgan Says Its AI Cash Flow Software Cut Human Work By Almost 90%<\/a><\/p>\n Lake, who runs Chase Bank and its credit card business, said that 10% was a modest estimate \u2014 the bank would most likely “deliver more” in headcount reductions.<\/p>\n “I would take the over on this projection and bet that we will deliver more,” Lake said, per Business Insider<\/i><\/a>. She did not disclose a timeline for when the workforce reductions would occur or which roles they would impact.<\/p>\n JPMorgan’s Chief Financial Officer, Jeremy Barnum, 52, disclosed at the same investor day event that the bank would spend less than $95 billion on hiring this year as AI makes operations more efficient. That’s a drop from $200 million<\/a> in hiring efforts in 2023 and $100 million<\/a> in 2024.<\/p>\n “We’re asking people to resist headcount growth where possible and increase their focus on efficiency,” Barnum stated, per BI<\/i>. “It’s not just the amateurs who are helped by these [AI] tools. It’s amazing stuff, and we have high hopes for the efficiency gain.”<\/p>\n JPMorgan’s headcount has grown in recent years, swelling<\/a> over 20% from 255,350 employees in 2020 to over 317,000 in 2024. At the same time, the bank’s net income has doubled from $29.13 billion<\/a> in 2020 to a record-high $58.5 billion<\/a> in 2024.<\/p>\n Related: <\/b>JPMorgan Chase CEO Jamie Dimon Isn’t Worried About AI Taking Over Jobs \u2014 Here’s Why<\/a><\/p>\n At JPMorgan’s investor day, investors were eyeing the executives who could possibly take over the CEO position from Jamie Dimon when he retires within the next four years<\/a>.<\/p>\n According to The Wall Street Journal<\/i><\/a>, Lake is a top contender for the CEO spot. She started at the bank as an accountant and eventually became Chief Financial Officer from 2013 to 2019<\/a>, before being promoted to her current position.<\/p>\n The other two CEO hopefuls are reportedly the co-heads of JPMorgan’s corporate and investment bank, Doug Petno, 59, and Troy Rohrbaugh, 55.<\/p>\n Petno started as an investment banker at JPMorgan before eventually becoming the CEO of commercial banking from 2012 to 2024<\/a>. Rohrbaugh joined JPMorgan in 2005<\/a> as a managing director and was previously the head of Macro Markets, which includes the bank’s foreign exchange and emerging markets businesses.<\/p>\n Related: <\/b>JPMorgan Chase CEO Jamie Dimon Shares Four Tips for Leaders<\/a><\/p>\n Dimon said on Monday at the investor event that he still intends to retire as CEO within the next four years, though he and JPMorgan have yet to publicly announce a successor.<\/p>\n “What we’ve told you is that the board has intent\u2026 to be thinking about succession, and we should be doing that,” Dimon said, per Barron’s<\/i><\/a>.<\/p>\n Dimon has led the bank since 2006<\/a>. JPMorgan shares have skyrocketed by nearly 200%<\/a> over the past five years.<\/p>\n<\/div>\n JPMorgan Chase is trying to use AI to cut down its headcount.<\/p>\n At the company’s annual investor day<\/a> on Monday, JPMorgan’s CEO of consumer and community banking, Marianne Lake, 56, gave a presentation predicting that AI would allow the bank to reduce employee numbers by 10% in the operations and account services departments. The operations division processes statements and payments, while the account services unit manages day-to-day transactions.<\/p>\n Related: <\/b>JPMorgan Says Its AI Cash Flow Software Cut Human Work By Almost 90%<\/a><\/p>\n<\/div>\n![\"\"](\"https:\/\/assets.entrepreneur.com\/images\/misc\/1747676834_Marianne-Lake-GettyImages-477125813.jpg?width=1000\")
Marianne Lake. Photographer: Jin Lee\/Bloomberg via Getty Images<\/i><\/sup><\/p>\nWho will take over as JPMorgan CEO?<\/h2>\n