AI to Lead to 200,000 Job Losses in Global Banking Sector: Report
Bloomberg Intelligence predicted 200,000 jobs cut in global banks in the next three to five years as artificial intelligence encroaches on tasks carried out by human workers. According to a report published recently, the Chief information and technology officers observed an expected reduction of a net 3% of the workforce.
The BI senior analyst Tomasz Noetzel said that the back office, middle office, and operations are likely to be most at risk. Customer services expect to see changes as bots manage client functions, while know-your-customer duties would also be vulnerable. Any jobs involving routine and repetitive tasks are at risk due to AI. However, AI will not eliminate them fully rather it will lead to workforce transformation.
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Nearly a quarter of the 93 respondents predict a steeper decline of about 5 -10 percent of total headcount. The peer group covered by the BI includes Citigroup Inc., JPMorgan Chase & Co., and Goldman Sacha Group Inc.
Banks have spent years modernizing their IT systems to speed up the process and reduce costs in the wake of financial crisis, and are adapting new generations of AI tools to improve productivity.
Citi said in a report that AI will impact the jobs in the banking sector more than any other sector. About 54% of jobs across banking have a high potential to be automated, Citi said.
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Also, many firms have stressed that the shift will result in a change in roles rather than being replaced altogether. As per JM Morgan’s the AI efforts have so far augmented jobs. Jamie Dimon, JP Morgan’s CEO said earlier that AI will make dramatic improvements in worker’s quality of life.
