JPMorgan CEO Jamie Dimon warns AI and ‘dumb issues’ can set off a 2008-like disaster
Dimon in contrast the present state of affairs to the 2005-07 period, simply earlier than the 2008 crash. He stated that the present state of affairs is nearly the identical. “The rising tide lifts all boats. Everybody was making some huge cash…I don’t know the way lengthy it’ll be nice for everyone,” he added whereas talking at an occasion on Monday, as quoted by CNN.
The veteran banker stated persons are doing dumb issues to earn a living in turbulent markets to assert they’re “successful within the markets enterprise”. With out mentioning names, he was referring to the monetary establishments making dangerous bets to earn good earnings, whereas inventory markets are reacting to developments like tariffs and synthetic intelligence.
“My nervousness is excessive over it,” he stated, as quoted by the report, including that there can be a cycle at some point, though he isn’t positive of what confluence of occasions can result in that cycle. He added that he’s not assuaged by the truth that asset costs are excessive, saying that this really provides to the danger.
Dimon additionally commented on the continued frenzy round synthetic intelligence. He defined industries like newspapers, utilities and cellphone firms appeared secure till the problems through the 2008 collapse. “This time round, it is perhaps software program due to AI…There are shifting tectonic plates beneath it, which causes the trade to be challenged,” he stated.
Notably, worries about AI-led disruption have led to an enormous international tech selloff. The selloff started after AI startup Anthropic launched plug-ins for its Claude Cowork agent, which might automate duties throughout authorized, gross sales, advertising and marketing and information evaluation departments.
(Disclaimer: Suggestions, ideas, views and opinions given by the specialists are their very own. These don’t characterize the views of The Financial Occasions.)