The global banking industry may cut as many as 200,000 jobs in the next three to five years as AI becomes more commonplace, a survey has revealed.
According to a survey by Bloomberg Intelligence, these banks are expected to have a workforce reduction of about 3 per cent on average.
Tomasz Noetzel, the BI senior analyst who wrote the report, said the back office, middle office, and operations are likely to be at the highest risk, in addition to customer service.
The crisis is likely to spillover to India as many of these banks have outsourced their customer service operations to the call centres here. UK bank Barclays and American Express are two of the many such units with major operations in Noida and Gurugram, a Delhi neighbourhood, even though it is not clear whether the firms were mulling slashing their workforce in the coming years already.
"Jobs involving routine and repetitive tasks are at the highest risk," Noetzel said.
The survey suggests that by 2027, AI may help banks increase their pre-tax profit by 12 per cent to 17 per cent, boosting their collective bottom line by an additional $180 billion.
The forecast is in consonance with insights from ten respondents who expect generative AI to boost productivity and revenue by at least 5 per cent in the upcoming three to five years through modernisation of the IT systems and cost-cutting.
In June last year, Citi in a report claimed that AI is likely to displace more jobs across the banking industry than in any other sector – about 54 per cent of all jobs.
Image Source: Unsplash
Comments