Bloomberg Talks
Episode: Mary Erdoes Talks Credit Market and AI
Date: October 28, 2025
Host: Bloomberg
Guest: Mary Erdoes, CEO of Asset & Wealth Management, JP Morgan
Location: FII conference, Riyadh, Saudi Arabia
Episode Overview
This episode centers on Mary Erdoes, JP Morgan's CEO of Asset & Wealth Management, as she reflects on the firm's 90-year history in Saudi Arabia and delves into top-of-mind topics at the Future Investment Initiative (FII) conference. The discussion covers JP Morgan’s legacy and strategy in the region, global wealth management trends, credit market risks, monetary policy outlook, and the transformative role of AI in finance. Erdoes addresses the impact of AI on jobs and operational efficiency and counters fears of widespread job displacement.
Key Discussion Points & Insights
1. JP Morgan’s 90 Years in Saudi Arabia
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Historical Perspective (00:29 – 01:45)
- Mary discusses celebrating JP Morgan’s 90th anniversary in the region—beginning before oil was discovered.
- Noteworthy celebration included ministers and leaders; many highlighted their roots in JP Morgan’s regionally renowned credit training program.
- Quote:
“It is incredible to think that 90 years ago we were facilitating gold payments and moving it here into the region before oil was even discovered.” —Mary Erdoes (00:53)
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Building Relationships & Competition (01:45 – 02:45)
- The landscape is competitive, with many global banks now entering the region.
- JP Morgan’s sustained presence owes to long-term relationship-building and trust across industries, adapting through both highs and lows.
- Riyadh was recently named the firm’s regional headquarters, underscoring JP Morgan’s commitment.
2. Wealth Management Trends in the Gulf & Beyond
- Universal Home-Country Bias (02:45 – 03:36)
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Similarities in wealth management priorities globally, despite local nuances.
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Continued accumulation of wealth within maturing Gulf economies, especially among ultra-high-net-worth individuals.
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Conferences like FII highlight broad investment opportunities, from energy to manufacturing and AI.
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Quote:
“No different. You know, everybody has a home country bias. We can't get away from it depending on where we live … Every major asset manager is here. Everyone's talking about the opportunities.” —Mary Erdoes (03:08)
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3. Credit Market Signals, Risk Management, and Economic Outlook
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Stress Testing and Vigilance (03:36 – 05:00)
- JP Morgan stress-tests its portfolios and those of clients daily.
- Acknowledges prolonged market highs without corrections or recessions; vigilance is essential.
- Observes micro signs of trouble (such as amend & extend in credit), though no major warning signals yet.
- Quote:
“JP Morgan prides itself on fortress balance sheet. We want to be there in good times and bad for our clients. ... And there aren't major signs, but you're seeing, you know, little pockets of it.” —Mary Erdoes (03:57)
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Inflation Expectations & Fed Policy for 2026 (05:00 – 05:48)
- Surprised by the muted inflation impact from remilitarization and tariffs.
- Rate cuts and reinvestment are bullish; 2026 positioned to be strong if risk is managed and portfolios trimmed judiciously.
- Quote:
“You're getting interest rate cuts. That's very bullish for the economy. You're getting a lot of reinvestment. That's very bullish for the economy. And so I think 2026 is setting itself up to be another great year.” —Mary Erdoes (05:13)
4. AI’s Strategic Role in Finance
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Adoption, ROI, and Efficiency Gains (05:48 – 07:43)
- Dismisses the idea of an "AI bubble"—compares it to the early computer era.
- AI is a fundamental new way of working, enabling smarter, faster, more secure operations.
- JP Morgan invests $18 billion annually in technology, including AI and quantum computing.
- AI adoption by US companies outpaces international peers; most applications focus first on "no joy"—monotonous—work.
- True transformation comes from rethinking entire business processes, not just incremental improvements.
- Quote:
“Is there an AI bubble? I said, that's like asking if there's a computer bubble. It's not really a thing. AI is a new way of working.” —Mary Erdoes (06:05)
- Quote:
“You start with fixing the no joy, you know, get rid of all the no joy work, try to get AI to optimize those kind of things.” —Mary Erdoes (06:53)
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Cost Deflation and Client Experience (07:37 – 08:14)
- AI offers efficiency, can lead to cost deflation, and allows for tailored client experiences at scale.
- The real differentiator will be talent that is curious and ready to adopt AI tools.
- Quote:
“All you need is curiosity and a little AI and you can go very far in making the right products and services for the clients of the future.” —Mary Erdoes (07:43)
5. The Impact of AI on Employment
- Job Displacement Fears (08:14 – 09:21)
- Contradicts the narrative that AI will eliminate many jobs, especially entry-level ones.
- Predicts jobs will be lost for those lacking curiosity or resistance to adapt; opportunity lies in engaging with new tools.
- Quote:
“The jobs that will be replaced are those for the people that are not curious, for the people that are not using AI … I don't think it's a job destroyer for those kind of people. I think it's a job destroyer for the people that are waiting and fearful that it is going to take over their job.” —Mary Erdoes (08:24)
Notable Quotes & Memorable Moments
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On JPM’s history in Saudi Arabia:
“It is incredible to think that 90 years ago we were facilitating gold payments and moving it here into the region before oil was even discovered.”
—Mary Erdoes (00:53) -
On the myth of an AI bubble:
“Is there an AI bubble? … that's like asking if there's a computer bubble. It's not really a thing.”
—Mary Erdoes (06:05) -
On the true risk from AI for jobs:
“The jobs that will be replaced are those for the people that are not curious, for the people that are not using AI...”
—Mary Erdoes (08:24) -
On 2026 economic forecast:
“You’re getting interest rate cuts. That's very bullish for the economy. You're getting a lot of reinvestment. That's very bullish for the economy. And so I think 2026 is setting itself up to be another great year.”
—Mary Erdoes (05:13)
Key Timestamps
- 00:29 – Interview introduction
- 00:53 – Reflections on JP Morgan’s 90 years in Saudi Arabia
- 02:06 – Discussion on competition and market share
- 02:45 – Wealth management trends and global similarities
- 03:36 – Credit market risks and stress testing portfolios
- 05:00 – Economic momentum and 2026 outlook
- 05:48 – Impact and adoption of AI in finance
- 07:43 – AI as an efficiency lever and client service
- 08:24 – AI’s impact on jobs and future skillset needs
- 09:21 – Interview conclusion
Conclusion
Mary Erdoes presents a forward-looking, pragmatic view on finance, wealth management, and technological transformation. With an emphasis on adaptability, curiosity, and incremental as well as radical change, she positions JP Morgan—and the industry at large—as cautiously optimistic about both the global credit landscape and the positive, though disruptive, potential of AI. The episode is rich in actionable insight, particularly for those interested in the intersection of finance, technology, and organizational change.