The world's largest banks will cut up to 200,000 jobs over the next 3 to 5 years as artificial intelligence (AI) begins to perform tasks currently performed by humans, according to estimates provided by Bloomberg.
CIOs surveyed by Bloomberg Intelligence (BI) expect to cut an average of 3% of their workforce. Senior BI analyst Tomasz Knozel believes that employees in the back office, risk control and operations will be most at risk. “Any job that involves routine, repetitive tasks is at risk. But AI won't eliminate them completely, but rather transform the workforce," he added.
The study's findings suggest that there will be industry changes that will drive revenue growth. According to BI, banks' pre-tax profits could be 12-17% higher in 2027, adding $180 billion to their total profits as AI drives productivity gains.