James impressed on debut in victory over Crystal Palace on Saturday.
"He's got the abilities to go very far," said Lampard. "It's hard to cap that, or not cap it, but I think that from what I see from him in training, what I saw at Wigan, and Jody Morris and Joe Edwards know him very well from the youth teams here and speak so highly of his talent.
"You always see when experienced players respect young players that come and train with you regularly and see the quality, it's always a good sign. I've got huge belief that he can as far as he wants in the game, because I see so much improvement.
"His raw talent and ability, which was there to see against Crystal Palace, is just the start of the story. There's a lot more to add on to that which is going to see him be a big, big player for this club."