Ai To Cut Up To 200 000 Banking Sector Jobs: Report

Chief information and technology officers surveyed for Bloomberg Intelligence indicated that on average they expect a net 3 of their workforce to be cut, according to a report published on Thursday.

Backoffice, middle office and operations are likely to be most at risk, Tomasz Noetzel, the BI senior analyst who wrote the report, said in a message. Customer services could see changes as bots manage client functions, while know-your-customer duties would also be vulnerable. "Any jobs involving routine, repetitive tasks are at risk," he said. "But AI will not eliminate them fully, rather it will lead to workforce transformation."

Nearly a quarter of the 93 respondents predict a steeper decline of between 5 and 10 of total headcount. The peer group covered by BI includes giant US banks such as Citigroup, JPMorgan Chase Co and Goldman Sachs Group.

The findings point to far-reaching changes in the industry, feeding through to improved earnings. In 2027, American banks could see pre-tax profits 12 to 17 higher than they would otherwise have been - adding as much as US180-billion to their combined bottom line - as AI powers an increase in productivity, according to BI. Eight in 10 respondents expect generative AI to increase productivity and revenue generation by at least 5 in the next three to five years.