The banking sector on the brink of change: AI will replace 200 thousand employees.

Global banks plan to cut up to 200,000 jobs due to the rise of artificial intelligence

According to Bloomberg, information and technology executives plan to reduce up to 200,000 jobs over the next three to five years. This has become possible because artificial intelligence is starting to perform tasks that were previously done by humans.

According to a BI survey, staff is expected to be reduced by 3%. The most vulnerable groups are back-office, middle-office, and operational department employees. Changes may also affect customer service, where jobs can be replaced by bots, as well as tasks related to the 'know your customer' procedure.

According to the Bloomberg Intelligence report, about a quarter of companies predict a significant reduction in staff of 5% to 10%. Among the companies that will seriously change their personnel are Citigroup Inc., JPMorgan Chase & Co., and Goldman Sachs Group Inc.

However, the report also indicates an increase in bank profits. With the implementation of artificial intelligence, banks could gain an additional 12-17% profit before taxes, which could bring them up to $180 billion by 2027. Most respondents expect that artificial intelligence will increase productivity and revenue by 5% or more over the next three to five years.

Banks that have already modernized their IT systems after the financial crisis are actively implementing new artificial intelligence tools to enhance productivity.

While changes will lead to the disappearance of some positions, many companies emphasize the transformation of roles through technology rather than complete replacement. The implementation of artificial intelligence will improve the quality of life for employees, giving them more free Time.