JPMorgan Chase CEO Jamie Dimon said artificial intelligence spending could reach approximately $1 trillion in 2027, up from an estimated $700 billion this year and about $300 billion in 2025.

Dimon made the comments during an interview with CNBC-TV18 on the sidelines of the JPMorgan India Conference. He said the rapid increase in AI investment represents a significant expansion of spending as companies build data centers, power infrastructure and other facilities needed to support the technology.

Dimon estimated that AI spending could amount to roughly a 1% increase in gross domestic product each year. He also warned that the investment boom could add some inflationary pressure as companies compete for workers, equipment, materials and energy needed to expand AI infrastructure.

Over the longer term, however, Dimon said AI could have a deflationary effect as businesses use the technology to improve productivity and reduce costs. He described AI as an “unbelievable technology” and said its rapid expansion appears likely to continue.

Dimon also cautioned that investors should not expect every AI investment to produce an easily measurable return. He said some spending could be considered necessary simply to remain competitive, describing certain investments as “table stakes.”

The JPMorgan CEO also addressed broader economic pressures, saying heavy demand for capital from infrastructure projects, military spending and government deficits could contribute to higher interest rates. He added that a market correction could occur, although he did not identify AI as necessarily being the cause.

Ahead of President Donald Trump's planned meeting with Chinese President Xi Jinping, Dimon said the two countries appeared to be making progress and should continue engaging on trade, artificial intelligence and national security issues. He also called for the United States and India to return to negotiations and complete a trade agreement.

Dimon said JPMorgan intends to continue expanding its operations in India, predicting that the country's economy could grow to three times its current size over the next decade.