The inexorable march of AI (artificial intelligence) will soon start taking over human roles in global banks, which could sack 2 lakh employees in the next 3 to 5 years, a survey of chief information and technology officers conducted by Bloomberg Intelligence has found out. The respondents of the survey said that they look forward to a situation where there will be a 3% average reduction in workforce. The companies who participated in the survey included MNC giants such as Citigroup Inc., JPMorgan Chase & Co. and Goldman Sachs.
According to a report published on January 9, 2025, said the sectors most affected could be back office, middle office and operations. Furthermore, “Any jobs involving routine, repetitive tasks are at risk… But AI will not eliminate them fully, rather it will lead to workforce transformation,” Bloomberg Intelligence senior analyst Tomasz Noetzel was quoted as saying. Bits will increasingly shoulder the responsibility of managing interactions with clients and prospective clients/customer enquiries.
Steeper decline in human roles possible
What’s more concerning for employees is that almost 25% of the 93 respondents think a faster decline in human jobs lost is possible and the rate might be as high as 5%-10% of the total number of employees. The peer group covered by BI includes Citigroup Inc., JPMorgan Chase & Co. and Goldman Sachs Group Inc.
Boost to bottom line
As AI powers productivity, the impact is expected to boost the bottomline of the banks. It has been stated that in 2027, banks could record profit before tax higher by 12%-17% compared to what they would have otherwise been. In value term, this can translate to about $180 billion. As much as 80% of the respondents have said that generative AI will boost productivity and revenues by at least 5% in the next 3 to 5 years.
In a report in June 2024, Citi mentioned that AI will displace more (human) jobs in the banking industry than in any other sector. The MNC said that as high as 54% of jobs across the banking industry have a high potential to be done through AI.
It’s no more in the domain of speculation. In a survey of chief information and technology officers carried out by Bloomberg Intelligence, it has been found that global banks will axe nothing fewer than 2 lakh jobs in three to five years AI takes over the jobs of humans more and more. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
