With AI at risk, 200 thousand positions in banks on Wall Street

Global banks will cut up to 200,000 jobs in the next three to five years as artificial intelligence invades the tasks currently performed by human workers. Bloomberg Intelligence reports it.

According to a report released today, Chief Information and Technology Officers surveyed by BI said they on average expect to cut 3% of their workforce. For Tomasz Noetzel, the senior BI analyst who wrote the report, the sectors more the back office is at risk middle office and operations. Customer support services could be affected by bots handling customer functions, while customer knowledge tasks would also be vulnerable.

“All jobs that involve routine, repetitive tasks are at risk,” Noetzel said. “But theIA it will not eliminate them entirely, rather it will lead to a transformation of the workforce.

Nearly a quarter of the 93 respondents expect a steeper decline, ranging between 5% and 10% of the total workforce. The peer group covered by BI includes Citigroup Inc., JPMorgan Chase & Co. and Goldman Sachs Group Inc. The findings point to far-reaching changes in the industry, which will be reflected in improved earnings. According to BI, banks could see pre-tax profits 12-17% higher than they otherwise would have achieved in 2027, adding up to $180 billion to their overall profits, as AI drives increased productivity. Eight in ten respondents expect generative AI to increase productivity and revenue generation by at least 5% over the next three to five years.