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Global Banks Set to Cut 200,000 Jobs as AI Takes Over Routine Tasks

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Artificial Intelligence
Artificial Intelligence

A new survey from Bloomberg Intelligence has revealed that global banks are poised to cut as many as 200,000 jobs over the next three to five years, as artificial intelligence (AI) increasingly encroaches on roles traditionally held by human workers.

According to the survey of chief information and technology officers, an average of 3% of the workforce is expected to be cut, with nearly a quarter of respondents anticipating reductions of between 5% and 10%. The largest financial institutions are expected to lead these job cuts, driven largely by automation in routine tasks.

Tomasz Noetzel, the senior analyst behind the Bloomberg Intelligence report, highlighted that roles in back office, middle office, and operations are particularly vulnerable. As AI continues to improve, customer service functions may also be affected, with chatbots increasingly capable of handling client interactions. Furthermore, jobs related to compliance, such as know-your-customer (KYC) duties, are at risk.

Noetzel noted that while AI will not entirely eliminate these jobs, it will transform the workforce, reshaping the way tasks are carried out. “Any jobs involving routine, repetitive tasks are at risk,” he said.

The survey findings align with a broader outlook within the industry, with Citi projecting in June that 54% of jobs in banking have high potential for automation—more than any other sector. Additionally, 12% of roles are likely to be augmented by AI rather than fully replaced.

Citi’s report further emphasized the historical pattern of technological transformations, where automation has led to the displacement of some jobs but has also created new roles and, in some cases, entirely new industries. The report suggests that AI will follow a similar trajectory, potentially accelerating the pace of change.

As banks brace for these workforce changes, the shift toward AI promises to reshape the financial sector, with both challenges and opportunities for workers and businesses alike.

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