The JPMorgan tech budget will rise to $19.8 billion in 2026, executives said at a company update. The figure is about a 10% increase from 2025, with much of the rise tied to new investments. Executives said some of that investment will support AI-related projects.
The spending plan matters for bank profitability and competitive positioning. Technology costs are a major driver of expense growth across the industry. Investors have pressed management teams on payback, especially for generative AI initiatives.
Spending Increase Tied to Investments and Cost Pressures
Jeremy Barnum, the bank’s chief financial officer, said technology remains a major driver of expense growth. He said expenses are up about $9 billion year over year. He attributed a large portion of the tech increase to about $1.2 billion in investments.
Executives also pointed to inflation and higher hardware costs. They said AI infrastructure can be more expensive than prior computing cycles. Barnum said technology headcount growth is not a major driver of the increase.
The bank has budgeted some additional staff for new products, he said. He also described a culture that discourages hiring whenever a new opportunity appears. That approach signals a focus on tooling and automation over large staffing increases. The broader expense backdrop is also rising. The bank has estimated 2026 expenses at around $105 billion, with about $20 billion for technology. One-quarter of the roughly $9 billion in increased expenses is tied to tech and “tech-adjacent” items, according to executives.
Executives Say AI Returns Are Hard to Measure
Jamie Dimon, the bank’s chief executive, said measuring returns from AI is difficult. He said technology projects are uniquely hard to quantify, initiative by initiative. He said time savings are often too vague to be converted into clear metrics.
A key investor concern is whether the spending translates into durable margin improvement. Some benefits show up as faster workflows rather than direct revenue. Dimon’s remarks suggest management expects productivity gains, even without precise accounting.
The bank has highlighted internal adoption as one indicator of traction. Dimon said about 150,000 employees use an internal large language model each week. He said employees have reported saving about four hours per day with the tool.
Dimon also warned that economy-wide impacts could be disruptive. He said AI could lift productivity but also contribute to layoffs elsewhere. He said society should prepare if change arrives faster than the adjustment mechanisms can keep pace.
Where the Bank Says It Is Deploying AI
Barnum said investment is aimed at the highest-impact areas. He cited improvements in customer service in call centers. He also cited more personalized insights for clients. He pointed to tools for software engineers as another priority.
Executives said generative AI is becoming a larger share of the bank’s AI usage. That suggests pilots are expanding into more workflows. Banks have increasingly used AI for service routing, knowledge search, and developer assistance.
The bank’s consumer leader, Marianne Lake, said the organization stays focused on process improvement. She described a mindset of constant optimization for customer value. She also said the bank does not assume success is guaranteed. The competitive framing extends beyond traditional banks. Dimon said the bank has lost market share to firms like PayPal and Stripe in the past. He said management will invest heavily if it moves the bank forward.
Competitive Benchmarking and Market Implications
The spending plan arrives amid heavier technology investment across U.S. banking. Bank of America has said it plans to spend around $14 billion on technology this year. Rival spending increases pressure to show tangible improvements in customer experience and cost efficiency.
The bank has also been cited as an industry leader in AI maturity. It ranked No. 1 on Evident AI’s index of AI maturity at banks, according to executives. That ranking can support recruiting and vendor negotiations, but investors still want earnings impacts.
Dimon has argued that world-class technology is essential for competitiveness. He said it drives investment, margins, and competition. The message signals that management views the JPMorgan tech budget as a strategic necessity rather than discretionary spending.
For shareholders, the near-term issue is operating leverage. Higher technology outlays can pressure expenses before savings materialize. The longer-term bet is that better tools can improve retention, reduce service costs, and defend market share.
