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News » Global banks to cut 200,000 jobs as AI revolution accelerates: Bloomberg Intelligence

Global banks to cut 200,000 jobs as AI revolution accelerates: Bloomberg Intelligence

Tech layoffs

NEW YORK, UNITED STATES — Artificial intelligence threatens to eliminate up to 200,000 jobs globally in the banking industry within the next three to five years. 

This prediction comes from Bloomberg Intelligence’s survey of 93 chief information and technology officers from top banks like Citigroup Inc., JPMorgan Chase & Co., and Goldman Sachs Group Inc. It revealed an average expected workforce reduction of 3%.

Impact of AI across banking sectors

The most vulnerable positions are concentrated in back office, middle office, and operations departments. Customer service roles face restructuring as automated systems take over client interactions, while know-your-customer (KYC) processes are also at risk. 

“Any jobs involving routine, repetitive tasks are at risk,” explains Tomasz Noetzel, BI senior analyst. “But AI will not eliminate them fully, rather it will lead to workforce transformation.”

Financial implications

The transformation could prove highly profitable for banks, with pretax profits projected to surge 12% to 17% by 2027 – potentially adding $180 billion to their combined bottom line.

Approximately 80% of surveyed executives anticipate generative AI will boost productivity and revenue generation by at least 5% within five years.

Industry response and future outlook

While Citigroup’s research suggests that 54% of banking jobs have high automation potential, some industry leaders maintain a more nuanced view. 

JPMorgan’s Teresa Heitsenrether emphasizes that AI is currently augmenting rather than replacing jobs.

Jamie Dimon, JPMorgan’s CEO, offers an optimistic long-term perspective, suggesting that AI could dramatically improve work-life balance. “Your children are going to live to 100 and not have cancer because of technology,” he states, predicting a future with “three-and-a-half days a week” workweeks.

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