AI is real, but like every boom, many will not survive: Jamie Dimon Exclusive

Jamie Dimon, CEO of JPMorgan Chase and Co., the world's largest bank by assets, believes that Artificial Intelligence, just like the trends of the past, will go through a boom and bust cycle, but is here stay.

In an exclusive interaction with CNBC-TV18 on Monday, September 22, Dimon highlighted that AI in itself is real, so real, that people are pouring billions to diversify into this segment.

Companies have been spending billions to adapt to Artificial Intelligence in various forms and JPMorgan is no different. "We have 2,000 people doing it and 500 use cases," Dimon said, adding that with more people putting a lot of money behind it, the costs, that are currently higher, will eventually come down.

Despite the increasing adaption, Dimon, the CEO of JPMorgan Chase, expects the law of averages to catch up with AI as well.

"In almost every real investment boom, you've had people who didn't do it right? So when cars boomed, a lot of car companies went bankrupt. When television boomed, a lot of television companies went bankrupt. When the internet bubbled, that was real too," Dimon said. "So, parts of it may very well be in this kind of bubble thing, but parts aren't," he added.

Dimon expects AI to develop over a period of time as people will use it "for a million different things," and that his mind is "more than using it."

News reports indicate that the Big Tech companies, as of August, have already spent or committed to spending a total of $155 billion on Artificial Intelligence, more than what the US government has spent on education, training, employment and social services, in the fiscal so far.

"We're using large language models and small language models. Have open source models and closed models, and whatever works best for our company, our client, is how we're going to do it," Dimon said.