Artificial intelligence (AI) could lead to the elimination of up to 200,000 jobs in the banking sector over the next few years, according to a report by Bloomberg Intelligence. This reduction would account for about 3% of the global workforce in the industry. This results from banks increasingly adopting AI technologies to streamline operations and reduce costs.
Banks are already integrating AI in various functions. Citigroup, for instance, is using generative AI to help staff quickly analyze hundreds of pages of regulatory proposals and this has helped to significantly reduce the time and effort required. At Quarna, an AI assistant is performing tasks equivalent to those of 700 full-time customer service agents.
JP Morgan has reported significant financial gains from its AI initiatives, expecting a $2 billion benefit in the previous year alone. Bloomberg Intelligence projects that the widespread adoption of AI could boost banking profits by as much as $182 billion by 2027.
Despite the potential job losses, it’s not all bleak for the banking workforce. The demand for data scientists, cybersecurity experts, and compliance specialists is expected to rise, as these roles become increasingly crucial in managing and developing AI technologies.
