AI adoption could slash 200,000 jobs in global banking

By Bao Lam   January 15, 2025 | 04:34 pm PT
Banks are expected to cut 200,000 jobs in the next three to five years as AI becomes integral to the workforce.

A Bloomberg Intelligence survey that polled over 100 technology executives on Wall Street and at international banks found that the average workforce could reduce by 3% at banks annually, adding up to 200,000 jobs, as AI adoption accelerates.

Roles in the back and middle offices and operations are most vulnerable, according to Tomasz Noetzel, BI senior analyst and author of the report.
"Any job involving routine, repetitive tasks is at risk," Noetzel said. "But AI will not eliminate them fully, rather it will lead to workforce transformation."

AI integration is expected to boost profitability, with pre-tax profits projected to rise by 12–17% by 2027, equating to an additional $180 billion in revenue. According to Fortune, banks have invested heavily in modernizing IT systems to improve efficiency and reduce costs, and many are now embracing AI tools. Citi reported in June that the banking industry is more susceptible to AI-driven job displacement than any other, with 54% of banking jobs having high automation potential.

JP Morgan Chases headquater in New York, the U.S. Photo by Reuters

JP Morgan Chase's headquater in New York, the U.S. Photo by Reuters

But despite concerns about job losses, many banks emphasize that AI will reshape roles rather than eliminate them entirely. Teresa Heitsenrether, who leads JPMorgan’s AI initiatives, said in November 2024 that generative AI had augmented rather than replace jobs. JPMorgan CEO Jamie Dimon expressed optimism about AI’s potential benefits in a 2023 Bloomberg Television interview.

"Your children are going to live to 100 and not have cancer because of technology. And literally they’ll probably be working three-and-a-half days a week."

Experts agree that while AI has made remarkable advances, it cannot replace human expertise in areas requiring strategic thinking and research. "AI supports the design of technology, but it is fundamentally different from understanding and addressing the social context where the technology is applied," said Yoshua Bengio, professor at the University of Montreal and a leading AI expert, at a recent event in Vietnam.

Truong Gia Binh, chairman of FPT Corporation, echoed this sentiment, advocating for AI as an "ally" rather than a competitor. He urged workers to adapt by acquiring skills in AI, machine learning, data science, problem solving, and analysis to remain competitive in an evolving job market.

 
 
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