200,000 Could Lose Jobs To AI In Global Banking!

In a rather alerting update, the banks are expected to cut more than 200,000 jobs in the next three to five years as AI becomes an integral part of the workforce.

According to a survey, the average workforce could be reduced by 3% at banks annually, adding up to 200,000 jobs due to an increase in AI adoption.

Any job involving routine and repetitive tasks is a risk. Though AI will not be able to eliminate them fully, it will lead to workforce transformation. The roles in the back and middle offices and operations are expected to be most affected in the near future.

AI integration is expected to boost profitability, with pre-tax projected to rise by 12-17 percent by 2027, equating to an additional $180 billion in revenue. Banks are heavily putting their money into modernizing IT systems for efficiency and cost cuts, and AI is a major part of it.

Citi reported in June that the banking industry is more susceptible to AI-driven job displacement than any other field. More than 54% of banking jobs have high automation potential.