Despite the anticipated job cuts, many banks emphasize that AI will augment rather than replace roles, enhancing efficiency and allowing employees to focus on more complex tasks. Eighty percent of respondents expect generative AI to increase productivity and revenue by at least five percent in the coming years. Banks like JPMorgan have highlighted that AI is currently augmenting jobs rather than eliminating them. The shift towards AI is part of a broader trend of modernizing IT systems to improve processes and reduce costs, with significant investments being made in AI infrastructure.
Key takeaways:
- Global banks are expected to cut up to 200,000 jobs in the next three to five years due to AI encroaching on tasks currently carried out by human workers.
- Chief information and technology officers surveyed expect a net three per cent reduction in workforce, with back office, middle office, and operations roles most at risk.
- AI is anticipated to increase productivity and revenue generation by at least five per cent, potentially adding up to US$180 billion to banks' combined bottom line by 2027.
- Many firms emphasize that AI will transform roles rather than replace them, with technology augmenting jobs and improving workers' quality of life.