Latest research: AI "snatching jobs", more than 200,000 people in the global banking industry are expected to lose their jobs.

According to a report by Bloomberg Intelligence, global banks are expected to lay off as many as 200,000 jobs in the next three to five years as artificial intelligence takes over tasks currently done by humans. A report released on Thursday shows that chief information and technology officers surveyed by BI expect to cut an average of 3% of their staff. BI senior analyst Tomasz Noetzel, who wrote the report, said that back-end, mid-office, and operations departments may face the greatest risk. With Siasun Robot & Automation managing client functionalities, customer service may see changes, and responsibilities of understanding customers may become fragile. He said, "Any job involving routine, repetitive tasks is at risk. But artificial intelligence won't completely eliminate them, rather it will lead to a transformation of the workforce." Out of 93 respondents, nearly one-fourth expect a decrease of 5% to 10% in total staff numbers. Peer groups surveyed by BI include Citigroup (C.US), J.P. Morgan (JPM.US), and Goldman Sachs Group, Inc. (GS.US). The survey results indicate profound changes in the industry, leading to increased profits. BI data show that by 2027, with artificial intelligence driving productivity improvements, pre-tax profits of banks may be 12% to 17% higher than before, with total profits increasing by $180 billion. Eight out of ten respondents expect that in the next three to five years, generative artificial intelligence will increase productivity and revenue by at least 5%. After the financial crisis, banks spent several years modernizing their IT systems to streamline processes and reduce costs, incorporating new generations of artificial intelligence tools to further increase productivity. In a report last June, Citigroup stated that the banking industry may see more job replacements by artificial intelligence than any other industry. Citigroup said at the time that around 54% of jobs in the entire banking industry have high automation potential. However, many companies emphasize that this shift will lead to roles being changed by technology, rather than completely replaced. Teresa Heitsenrether, responsible for J.P. Morgan's artificial intelligence work, said in November last year that the bank's use of generative artificial intelligence has so far increased job opportunities. J.P. Morgan CEO Jamie Dimon stated in an interview in 2023 that artificial intelligence may significantly improve employees' quality of life, even if it eliminates some positions. Dimon said at the time, "Because of technology, your children will live to be 100 without getting cancer. And in fact, they might work only three and a half days a week."