JPMorgan Chase plans to spend nearly $20 billion on technology this year, increasing its tech budget by almost $2 billion to $19.8 billion — a roughly 10% rise compared to 2025. The announcement came during the firm’s 2026 company update, where CFO Jeremy Barnum emphasized that technology remains a key driver of the bank’s overall expense growth, which is up by about $9 billion year-over-year. The bulk of the spending — $1.2 billion — is allocated to strategic investments, including several AI-focused initiatives. Barnum highlighted that the bank is prioritizing high-impact areas such as enhancing customer service in call centers, delivering personalized insights to clients, and improving tools for software engineers. He also noted that generative AI is becoming an increasingly significant part of the bank’s AI usage. Despite the scale of investment, CEO Jamie Dimon acknowledged that measuring the return on technology projects, particularly AI, is notoriously difficult. Responding to a question from Wells Fargo analyst Mike Mayo, Dimon said returns are often too abstract to quantify precisely. “I think the hardest thing to measure has always been tech projects,” he said, adding that even time saved through automation is “too vague” to capture in concrete terms. He noted this challenge has persisted throughout his entire career. While inflation is contributing to the rise in tech costs — especially in AI hardware — headcount growth is not a major factor. Barnum explained that although the bank has budgeted for some additional hires in technology, its culture generally resists expanding teams simply to pursue new opportunities. Even as JPMorgan ranks first on Evident AI’s index of AI maturity among banks, executives remain cautious about complacency. Marianne Lake, CEO of consumer and community banking, echoed this sentiment, quoting the adage, “Only the paranoid survive.” She stressed that the bank does not assume its success is guaranteed and remains focused on continuously optimizing customer value, processes, and systems. JPMorgan is not alone in its tech spending spree. Rivals like Bank of America are also investing heavily, with plans to spend around $14 billion on technology this year. Dimon has previously urged investors to trust his leadership on these decisions, arguing that maintaining technological leadership is essential for long-term competitiveness, profitability, and innovation. “We need to have the best tech in the world,” he said during a recent earnings call. “That drives investment, it drives margin, it drives competition.”