JPMorgan Chase & Co. (NYSE:JPM) CEO Jamie Dimon cautioned that artificial intelligence agents allowed to make payments for customers would need their bank codes, putting the agents inside the bank with no assurance that they will act in customers’ interests.
Speaking at The Economic Club of Chicago on Wednesday, Dimon said that if agents can make payments, customers have to hand over their bank code, and “that means they are in your bank and you’re assuming they’re going to act properly on your behalf and they may not.”
Dimon added that agents could do things that are “treacherous” for the bank.
He pointed to consumer agents such as Muse from Meta Platforms Inc. (NASDAQ:META), which launched in September to handle tasks like emails, travel bookings, and calendars.
The CEO also raised similar concerns on the bank’s third-quarter earnings call Tuesday, warning that there could be thousands of rogue agents.
JPMorgan is still rolling out its own AI, though, as CFO Jeremy Barnum said its Smart Cash tool for managing cash across accounts is in an early pilot.
Dimon compared AI to the Industrial Revolution but said it is moving far faster, “more like a tsunami” that no one can halt. He urged that the wave of technology must be managed.
JPMorgan has used AI since 2012 for risk, fraud, marketing, underwriting and customer service.
Dimon said AI tools are surfacing hundreds of significant vulnerabilities in open-source code, leaving “industries completely unprotected” against state actors, terrorists, and criminals.
The Federal Reserve, Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation are questioning lenders about advanced AI systems and safeguards, Reuters reported, while the Bank of England and European Central Bank are pressing banks to improve recovery plans for AI-related disruptions.
Still, Dimon sees a brighter side, predicting AI will help treat diseases such as cancer and cut road deaths by as much as 80%, and that people could work as little as 3.5 days a week within 30 years.
Price Action: JPMorgan closed 0.075% higher on Thursday at $335.53 and rose 0.042% in after-hours trading to $335.67.
Benzinga Edge rankings indicate JPMorgan’s stock has a Momentum score in the 55th percentile and a Growth score in the 59th percentile.
See More: Top Momentum Stocks
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: Lev Radin on Shutterstock.com