JPMorgan CEO Jamie Dimon predicts that artificial intelligence will lead to a three-and-a-half-day workweek for the next generation of employees, in an interview with Bloomberg Television on Monday.
Dimon shared how his bank is already deeply involved with AI and marveled at how effective the new technology is, making things more efficient for his brokers, bankers, traders, money managers and back-office operational teams.
The CEO was effusive in his praise of AI, including its usage outside of financial services, “Your children are going to live to 100 and not have cancer because of technology. And literally, they’ll probably be working three-and-a-half days a week.”
The chief executive may have been a little hyperbolic in his prediction, but with a long-time horizon, he might be proven right. Dimon and other top executives recognize the power of this evolving technology.
According to KPMG’s 2023 CEO Outlook survey, business leaders are investing in AI to gain a competitive edge, as 70% prioritize leveraging the tech to enable employees to work more efficiently, as they won’t get bogged down with rote, low-impact responsibilities.
In his April shareholder letter, Dimon stated that this technology is “critical” to the future success of his company and allocated an entire section of the letter to generative AI.
The rapid adoption of automation will free workers to focus on higher-level matters involving creativity, the human touch, communication and social skills. On the downside, Dimon suggests that AI can lead to job losses or decreased working hours, as the technology provides enhanced productivity.
Here’s The Catch
With AI’s ability to automate countless tasks, the labor market could be upended. For companies, there will be cost savings due to this fast-growing technology.
In a March Goldman Sachs report, the investment bank estimated that 300 million jobs could be lost or diminished by this fast-growing technology. Dimon is hopeful that his bank will “redeploy” those whose positions were replaced by AI.
Another concern is that if businesses reduce the hours their employees work, they may also be able to cut their wages. This could mean a decrease in wages for the next generation of workers.
According to an academic research study, automation technology has been the primary driver of U.S. income inequality over the past 40 years. The report, published by the National Bureau of Economic Research, claims that 50% to 70% of changes in U.S. wages since 1980 can be attributed to wage declines among blue-collar workers replaced or degraded by automation.
Additionally, many full-time, permanent employees could be reclassified as part-time, gig or contract workers. They’ll lose their full-time status along with all the benefits attached to it.
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