Global banks are projected to cut as many as 200,000 jobs over the next three to five years as artificial intelligence begins to take over tasks currently performed by human workers, according to a market survey by Bloomberg Intelligence.
Chief information and technology officers surveyed for Bloomberg Intelligence expect an average reduction of about 3% of their workforce. Nearly a quarter of the 93 respondents foresee a more significant decrease, estimating a reduction of between 5% and 10% of total headcount, particularly among the largest banks.
The back office, middle office, and operations are considered the most vulnerable, according to Tomasz Noetzel, the senior analyst behind the report. Customer service roles may also be affected as advancements in chatbots improve their ability to handle client functions. Additionally, tasks associated with know-your-customer duties could be at risk.
“No jobs involving routine, repetitive tasks are at risk,” Noetzel notes, emphasizing that while AI will not completely eliminate these positions, it will lead to a transformation of the workforce.
These figures are conservative compared to forecasts from Citi, which in June indicated that over half (54%) of jobs in banking are highly susceptible to automation, more than in any other industry. Another 12% of positions are likely to be significantly augmented by AI.
Citi’s report highlighted that in previous technological transformations, many established jobs have disappeared only to be replaced by new ones, noting that the rapid evolution of AI is likely to accelerate this cycle, potentially leading to the disappearance of some firms as well.