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Global banks are expected to cut as many as 200,000 jobs over the next three to five years as artificial intelligence (AI) gradually replaces tasks currently performed by human employees, according to a report released Thursday by Bloomberg Intelligence.
The banks surveyed by Bloomberg Intelligence include Citigroup, JPMorgan Chase, and Goldman Sachs. Chief information and technology officers surveyed expect their companies to have an average net layoff rate of 3%.
Tomasz Noetzel, a senior analyst at Bloomberg Intelligence and the author of the report, said that back-office, middle-office, and operational positions in banks are most likely to be at risk.
Customer service may change as robots also have customer management functions. “Any job involving routine, repetitive tasks is at risk…but AI will not completely eliminate these jobs, but will bring about a transformation of the workforce,” Noetzel said.
Of the 93 respondents, nearly a quarter predicted a sharp drop in total headcount of 5% to 10%.
