competition / in-house substitutessupply chain / foundryAI / new technologycybersecurity
SynthesisItem 1A contracted ~197 words YoY (20,846→20,649). 160 passages added, 137 dropped, 147 reworded. Most prominent new themes: competition / in-house substitutes, supply chain / foundry, AI / new technology, cybersecurity.(heuristic synthesis)
Added / expanded
+The rapid development and deployment of advanced technologies, including generative and agentic AI systems, present a range of risks to JPMorganChase’s businesses and operations, including: AI system failures, inappropriate use of AI systems, lack of transparency in AI systems, or inaccurate or biased output from AI systems resulting from rapid deployment, insufficient testing, erroneous data, ineffective model design or insufficient controls, which could disrupt operations, cause erroneous transactions, compromise data privacy, infringe on intellectual property, harm clients and customers, or impair JPMorganChase’s ability to make sound business decisions increased exposure to cyber attacks, system manipulation, or data loss if AI systems, particularly agentic systems, are not designed and implemented with appropriate safeguards to prevent systems from accessing sensitive data sources or system resources and taking actions intensified AI-enabled cyber threats, which may allow malicious actors to exploit vulnerabilities, reverse-engineer security patches, and conduct sophisticated social engineering attacks, potentially resulting in unauthorized access to sensitive information and data breaches, especially if JPMorganChase fails to adequately maintain, secure and upgrade its technological infrastructure in response to rapidly evolving technological advances regulatory and compliance challenges arising from rapidly evolving applicable law, including differences, inconsistencies and conflicts in international standards, which could increase costs, lead to fines and sanctions, and restrict JPMorganChase’s use of AI technologies 28 competitive disadvantage if competitors are able to deploy AI more quickly or effectively, potentially gaining advantages in cost efficiency, client and customer experience, or product innovation, which could result in a loss of market share to competitors, or replacement or disintermediation of direct customer relationships if AI agents autonomously manage or intermediate financial decisions and product selection or other services for customers.
Annual values parsed from us-gaap XBRL facts (10-K, full fiscal year). Source: SEC company facts API.
+JPMorganChase’s reputation could be harmed by its decisions to engage or not engage with a client or in a business activity that lead to negative commercial impacts, and could also be compromised by: inaccurate or misleading information about JPMorganChase or its clients, including results generated by AI, that is rapidly and broadly disseminated through any form of media, including social networking sites, and concerns that JPMorganChase has treated certain clients or customers unfairly Events or circumstances that damage JPMorganChase’s reputation could also negatively affect its business, results of operations and prospects, and could result in: greater scrutiny from governmental authorities or criticism from politicians, including in the form of investigations by governmental authorities or litigation unfavorable media coverage or commentary, including through social media campaigns 29 Part I certain clients and customers ceasing to do business with JPMorganChase, and encouraging others to do so impairment of JPMorganChase’s ability to attract new clients and customers, to expand its relationships with existing clients and customers, or to hire or retain employees, or certain investors opting to divest from investments in securities of JPMorganChase.
+Depending on the scope of the conflict, the hostilities could result in: worldwide economic disruption heightened volatility in financial markets severe declines in asset values, accompanied by widespread sell-offs of investments sudden increases in prices in the energy and commodity markets or for certain safe haven currencies substantial depreciation of local currencies, potentially leading to defaults by borrowers and counterparties in the affected region sustained disruption to or destruction of infrastructure, including energy and power facilities and undersea cables disruption of global trade, including retaliatory countermeasures changes in economic alliances or treaties, including the potential fragmentation of trade and economic activity that may result from the formation or hardening of national or regional alliances diminished consumer, business and investor confidence refugee and humanitarian crises, and economic sanctions or other regulatory requirements.
+JPMorganChase expects that the following trends will continue: it will be subject to heightened regulatory scrutiny and pervasive investigations and enforcement actions by governmental authorities, as well as criticism or litigation from clients or customers who claim that they have been harmed by actions taken by JPMorganChase in order to comply with applicable law governmental authorities will forgo opportunities to resolve investigations with informal supervisory actions, and will pursue formal and punitive enforcement actions with respect to actual or deemed violations of law resolutions of investigations and enforcement actions will result in the imposition of significant penalties, and governmental authorities will be more likely to bring formal enforcement actions against JPMorganChase if it has previously been subject to other investigations or enforcement actions by governmental authorities.
+Regulatory initiatives outside the U.S. have required and could in the future require JPMorganChase to significantly modify its operations or legal entity structure in the places in which those initiatives are implemented, such as requirements for: establishing locally-based intermediate holding companies or operating subsidiaries maintaining minimum amounts of capital or liquidity in locally-based subsidiaries implementing processes within locally-based subsidiaries for complying with applicable law separating (or “ring fencing”) core banking products and services from markets activities the orderly resolution of financial institutions executing or settling transactions on exchanges or through central counterparties (“CCPs”), or depositing funds with other financial institutions or clearing and settlement systems, and governance, control, conduct of business and compensation standards.
+JPMorganChase could face litigation, enforcement actions and heightened regulatory scrutiny, and its reputation could be damaged, by the failure or perceived failure to: adequately address or appropriately disclose actual or potential conflicts of interest, including those that may arise in connection with providing multiple products and services in, or having investments related to, the same transaction identify and address any conflict of interest that a third-party with which it is does business may have with respect to a transaction involving JPMorganChase deliver appropriate standards of service and quality, and to treat clients and customers fairly and with the appropriate standard of care provide fiduciary products or services in accordance with applicable law, or handle or use confidential information of customers or clients appropriately and in compliance with applicable law.
+Cyber attacks could take many forms, and may be designed to: introduce computer viruses or malicious code (i.e., “malware”) into JPMorganChase’s systems. obtain unauthorized access to JPMorganChase’s systems or to confidential information belonging to 21 Part I JPMorganChase or its clients, customers, counterparties or employees manipulate or destroy data disrupt, sabotage or degrade service on JPMorganChase’s systems and websites, including those that provide online banking and other services steal money, or extort money through the use of so-called “ransomware.” Threat actors that perpetrate cyber attacks include individuals or groups that are: sponsored by, or acting on behalf of, hostile countries or terrorist organizations cyber-criminals, or engaged in using technology to promote a political or social agenda (i.e., “hacktivists”).
+JPMorganChase has in the past and could in the future be required to modify its business and operations in response to changes in applicable law, regulatory decisions or supervisory expectations, such as: limiting the products and services that it offers increasing the prices that it charges for products and services, which could reduce the demand for them reducing the liquidity that it provides through market-making activities paying higher taxes or other governmental charges absorbing losses arising from fraudulent transactions perpetrated against its clients and customers disposing of certain assets, and doing so at disadvantageous times or prices forgoing business opportunities that it might otherwise pursue, or otherwise restricting its business activities.
Global workforce As of December 31, 2024, JPMorganChase had 317,233 employees globally, an increase of 7,307 employees from the prior year.
Global workforce As of December 31, 2025, JPMorganChase had 318,512 employees globally.
For example: larger firms such as JPMorganChase are often subject to more stringent supervision, regulation and regulatory scrutiny financial technology companies and other non-traditional competitors may not be subject to banking regulation, or may be supervised by a national or state regulatory agency that does not have the same resources or regulatory priorities as the regulatory agencies that supervise more diversified financial services firms, or the financial services regulatory and supervisory framework in a particular jurisdiction may favor financial institutions that are based in that jurisdiction.
For example: larger firms such as JPMorganChase often face more stringent supervision and regulation certain competitors, such as financial technology companies, may not be subject to banking regulation, or may be subject to less stringent oversight, or the regulatory and supervisory framework in a particular jurisdiction may favor locally-based firms.
In addition, sustained low growth, low or negative interest rates, inflationary pressures or recessionary conditions could diminish customer demand for the products and services offered by JPMorganChase’s consumer businesses. 16 Adverse economic conditions could also lead to an increase in delinquencies, additions to the allowance for credit losses and higher net charge-offs, which can reduce JPMorganChase’s earnings.
Adverse economic conditions could also lead to an increase in delinquencies, an increase in the allowance for credit losses or higher net charge-offs, which could reduce JPMorganChase’s earnings.
In addition, sustained low growth, low or negative interest rates, inflationary pressures or recessionary conditions could diminish customer demand for the products and services offered by JPMorganChase’s consumer businesses. 16 Adverse economic conditions could also lead to an increase in delinquencies, additions to the allowance for credit losses and higher net charge-offs, which can reduce JPMorganChase’s earnings.
In addition, JPMorganChase’s earnings from its consumer businesses could be adversely affected if customer demand for the products and services offered by its consumer businesses is diminished by sustained low growth, low or negative interest rates, inflationary pressures, or recessionary conditions.
A default by, or the financial or operational failure of, a CCP through which JPMorganChase executes contracts would require JPMorganChase to replace those contracts, thereby increasing its operational costs and potentially resulting in losses.
If a CCP through which JPMorganChase executes contracts suffers a financial or operational failure or otherwise defaults, JPMorganChase would be required to replace the relevant contracts, which would increase its operational costs and potentially result in losses.
Removed
−JPMorganChase’s businesses could be materially and adversely affected by: the ineffective implementation of business decisions any failure to institute controls that appropriately address risks associated with business activities, or to appropriately train employees with respect to those risks and controls staffing shortages, particularly in tight labor markets the possibility that significant portions of JPMorganChase’s workforce are unable to work effectively, including because of illness, quarantines, shelter-in-place arrangements, government actions or other restrictions in connection with health emergencies, the spread of infectious diseases, epidemics or pandemics, or due to extraordinary events beyond JPMorganChase’s control such as natural disasters or an outbreak or escalation of hostilities a significant operational breakdown or failure, theft, fraud or other unlawful conduct, or other negative outcomes caused by human error or misconduct by an employee of JPMorganChase or of another party on which JPMorganChase’s businesses or operations rely.
−These include laws, rules and regulations that have been adopted or proposed, as well as regulatory expectations, relating to: the establishment of locally-based intermediate holding companies or operating subsidiaries requirements to maintain minimum amounts of capital or liquidity in locally-based subsidiaries the implementation of processes within locally-based subsidiaries to comply with local regulatory requirements or expectations the separation (or “ring fencing”) of core banking products and services from markets activities requirements for the orderly resolution of financial institutions requirements for executing or settling transactions on exchanges or through central counterparties (“CCPs”), or for depositing funds with other financial institutions or clearing and settlement systems position limits and reporting rules for derivatives governance and accountability regimes conduct of business and control requirements, and restrictions on compensation.
−However, higher interest rates can also lead to: fewer originations of commercial and residential real estate loans losses on underwriting exposures or incremental client-specific downgrades, or increases in the allowance for credit losses and net charge-offs due to higher financing costs for clients the loss of deposits, particularly if customers withdraw deposits because they believe that interest rates offered by JPMorganChase are lower than those of competitors or if JPMorganChase makes incorrect assumptions about depositor behavior losses on available-for-sale (“AFS”) securities held in the investment securities portfolio lower net interest income if central banks introduce interest rate increases more quickly than anticipated and this results in a misalignment in the pricing of short-term and long-term borrowings less liquidity in the financial markets, and higher funding costs.
−In response to new and existing laws, rules and regulations and expanded supervision, JPMorganChase has in the past been and could in the future be, required to: limit the products and services that it offers reduce the liquidity that it can provide through its market-making activities refrain from engaging in business opportunities that it might otherwise pursue pay higher taxes (including as part of any minimum global tax regime), assessments, levies or other governmental charges, including in connection with the resolution of tax examinations incur losses, including with respect to fraudulent transactions perpetrated against its customers dispose of certain assets, and do so at times or prices that are disadvantageous impose restrictions on certain business activities, or increase the prices that it charges for products and services, which could reduce the demand for them.
−These attacks are often designed to: obtain unauthorized access to JPMorganChase's systems or to confidential information belonging to JPMorganChase or its clients, customers, counterparties or employees manipulate data destroy data or systems with the aim of rendering services unavailable disrupt, sabotage or degrade service on JPMorganChase’s systems steal money, or extort money through the use of so-called “ransomware.” JPMorganChase also experiences: distributed denial-of-service attacks intended to disrupt JPMorganChase’s websites, including those that provide online banking and other services, a higher volume and complexity of cyber attacks against the backdrop of heightened geopolitical tensions, and a high volume of disruptions to internet-based services used by JPMorganChase that are provided by third parties.
−The risk of a security breach due to a cyber attack could increase in the future due to factors such as: JPMorganChase’s ongoing expansion of its digital banking and other internet-based product offerings and its internal use of internet-based products and applications, including those that use cloud computing services advances in artificial intelligence, such as the use of machine learning, generative artificial intelligence and quantum computing by malicious actors to develop more advanced social engineering attacks, including targeted phishing attacks the inability to maintain the security of information transmitted by JPMorganChase due to advances in quantum computing that may counteract or nullify existing information protections, and the acquisition and integration of new businesses.