Wall Street Braces for 200,000 Job Cuts as AI Takes Over Banking Roles
In a significant shift triggered by advancements in artificial intelligence (AI), global banks are projected to cut up to 200,000 jobs over the next three to five years. A recent survey by Bloomberg Intelligence reveals that chief information and technology officers anticipate an average net reduction of 3% in their workforce.
These job losses are expected to impact primarily back office, middle office, and operations roles, with customer service and know-your-customer responsibilities also facing automation risks. According to a report from Citi, approximately 54% of jobs in the banking sector have a high potential for automation, indicating a substantial shift in employment dynamics.
While some industry leaders suggest that the integration of AI could enhance job quality rather than reduce it—highlighted by JPMorgan's commitment to embracing generative AI—concerns persist about job security in traditional banking roles. JPMorgan's CEO, Jamie Dimon, previously stated that technology will dramatically improve workers' quality of life in the long term.
As banks modernize their IT systems to increase efficiency and reduce costs following the financial crisis, the landscape of the banking industry is poised for profound change.
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