Dimon warns on AI job losses, calls for government-business incentives

JPMorgan Chase CEO Jamie Dimon on Tuesday warned that artificial intelligence could cost the U.S. jobs, and suggested the government could create an incentive system for businesses that help soften the blow.

“[If] all of a sudden it creates unemployment, that’s a big problem for society,” Dimon said, speaking on a panel with Palantir defense chief and former U.S. Rep. Mike Gallagher, R-Wis, at the Hill and Valley Forum in Washington.

“I don’t know the answer yet, but I would suggest it’s the following: It can’t be just government. It’s got to be business,” Dimon said. “But the government could create a system of incentives that business does the right thing to retrain people, early retirement, moving people … if we have the right system in place, we can accommodate much quicker.”

Dimon warned the economic changes driven by AI will happen quickly, warning that they may happen faster than other recent technological advances that disrupted the economy and displaced workers, such as the internet.

“It’s coming, it’s going to come quickly,” Dimon said. “This one may be quicker … so therefore, can we accommodate the people if they lose their jobs quick enough? And the answer is, I don’t know that’s going to happen, [but] I always like to be prepared.”

The warning about AI-induced job loss is the latest from Dimon, who has taken steps within JPMorgan Chase to shift employees into new roles as automation accelerates. Big banks have already moved to reduce hiring as AI continues to develop.

The potential for AI to disrupt the job market has become a critical issue in Washington, with multiple lawmakers proposing efforts to monitor or limit the amount of job displacement from AI.

Sens. Josh Hawley, R-Mo., and Mark Warner, D-Va., introduced a bill to require major companies and the federal government to report quarterly on AI job loss.

A new White House policy framework on AI asked Congress to develop legislation to support workers in the AI transition.