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Global banks are planning to reduce their workforce by as many as 200,000 employees over the next three to five years due to the growing adoption of artificial intelligence (AI) in tasks currently performed by humans.
According to a report by Bloomberg Intelligence, this trend reflects a shift among top technology and information executives, who anticipate a 3% reduction in the banking sector's workforce.
Thomas Noyesel, a senior analyst at Bloomberg Intelligence, predicts that support functions, risk assessment, and operations departments will be the most impacted. He notes that jobs involving routine and repetitive tasks are particularly vulnerable, as modern technologies aim to enhance productivity rather than entirely eliminate positions.
The report highlights that major banks, including CitiGroup, JPMorgan Chase, and Goldman Sachs, are expected to experience significant impacts from these changes. It forecasts that by 2027, AI-driven advancements could boost banking sector profits by 12% to 17%, potentially adding approximately $180 billion to the industry's net earnings.
Separately, a survey of 93 banking executives revealed that 80% expect a productivity and revenue increase of at least 5% within the next three to five years due to generative AI.
While banks are rapidly adopting new AI tools, some institutions emphasize that these changes will not result in the complete elimination of jobs but will instead transform their nature. Theresa Heitsenrether, who leads AI initiatives at JPMorgan Chase, stated that the bank’s use of generative AI aims to support employees rather than replace them.
JPMorgan’s CEO, Jamie Dimon, added that AI has the potential to improve employees’ quality of life, even as some jobs are reduced. He also suggested that advancing technology might lead to shorter workweeks in the future, contributing to better working conditions overall.