Jamie Dimon says AI spending will pay off—but ‘definitely not’ on the timeline you expect
Amid growing debate about whether increased AI spending will deliver returns, JPMorgan Chase CEO Jamie Dimon struck an optimistic note, saying the investments will likely pay off, but not in the way or on the timeline many expect.
“The amount of money spent is huge. Will it pay off overall? Probably just like the internet did.”
Pointing to previous trends, he said early major players such as Yahoo and Netscape faded away during the internet boom, while eventual winners such as Google and Facebook emerged later. “Will it pay off in the way you expect and on the timeline you expect? Absolutely not,” Dimon said.
Dimon: I won’t buy stocks and long-term US Treasuries at current valuations
Noting that markets are too complacent about rising geopolitical and financial risks, JPMorgan Chase CEO Jamie Dimon said he would avoid buying both stocks and long-term US Treasury bonds at current valuations.
“I think those risks are probably greater than other people think,” Dimon said in an hour-long interview with CNBC, pointing to the Ukraine and Middle East wars, U.S.-China tensions and rising military spending.
As for whether markets are undervaluing the possibility of a major shock, Dimon said it’s possible that something is cooking, “but what’s really happening is what’s not being cooked.”
He also suggested that he personally would not buy long-term Treasuries.
Even if inflation falls to the Federal Reserve’s 2% target, “the 10-year bond should probably be between 4% and 4.5%,” he said, adding that he sees little rise in Treasury prices.
He was equally cautious about stocks. Dimon said he would consider an individual stock if it were a “major investment,” adding that he would not buy shares at that valuation.
Many risks are shifting beneath the surface: Dimon
Despite geopolitical tensions and trade uncertainty, investor confidence has remained strong over the past few months. The S&P 500 has gained nearly 10% this year, driven by steady consumer spending, falling inflation and optimism about artificial intelligence. In fact, last week, JPMorgan Chase and its peers reported blockbuster quarterly results, driven by rising trading and investment banking revenues.
JPMorgan’s net income for the quarter was $21.2 billion, or $7.70 per share; Nearly every business exceeded expectations. Still, Chief Executive Jamie Dimon remained cautious about future prospects.
“A variety of risks are shifting beneath the surface, including tectonic plates, including geopolitical tensions and wars, sticky inflation, large global fiscal deficits, and high asset prices,” Dimon said in the statement. “We cannot predict how these forces will ultimately play out. They may remain manageable, but they can also cause meaningful disruption when they shift or collide.”
