Artificial intelligence will replace thousands of jobs in the banking sector, according to Bloomberg.

Global banks are planning to cut up to 200,000 jobs in the coming years as artificial intelligence (AI) begins to take over tasks that were previously performed by humans.

This is reported by Bloomberg.

According to a survey of IT and technology department leaders conducted by BI, an average reduction of 3% in staff is expected.

The most vulnerable positions are those in back-office, middle-office, and operational departments, notes Tomas Noetel, a senior analyst at Bloomberg Intelligence who prepared the report.

Additionally, changes may affect customer service, where bots will take over customer-facing functions, as well as tasks related to the "know your customer" process. "Jobs involving routine and repetitive tasks are at risk. However, AI will not completely replace these roles but rather transform the workforce," he stated.

About a quarter of the 93 respondents anticipate a more significant reduction, ranging from 5% to 10% of staff. Among the companies included in the BI study are Citigroup Inc., JPMorgan Chase & Co., and Goldman Sachs Group Inc.

The report indicates serious changes in the industry that will contribute to profit growth. By 2027, banks could see an additional 12-17% profit before tax, amounting to up to $180 billion, due to productivity gains from AI, BI predicts. Eight out of ten respondents expect generative AI to enhance productivity and increase revenue by 5% or more within three to five years.

The agency states that banks, which have modernized their IT systems over the years to accelerate processes and reduce costs post-financial crisis, are actively implementing a new generation of AI tools to boost productivity.

In June, Citigroup stated that AI is likely to replace more jobs in the banking sector than in any other sector. About 54% of jobs in the banking industry have a high potential for automation, the company noted.

However, many companies emphasize that the changes will focus on transforming roles through technology rather than completely replacing them. Teresa Gaitsenreiter, who oversees AI implementation at JPMorgan, stated in November that generative AI currently only complements jobs.

Jamie Dimon, CEO of JPMorgan, told Bloomberg Television in 2023 that AI will significantly improve the quality of life for workers, even if some positions disappear. "Your children will live to be 100 years old and won't suffer from cancer thanks to technology. And they will likely work three and a half days a week," Dimon said.

Background. Earlier, Mind reported that some experts predict that AI will soon discover a cure for cancer, halt climate change, and solve the problem of poverty. Others, on the contrary, demand strict measures from world leaders to curb the development of AI, warning that otherwise "a catastrophe awaits us."