With the continuous advancement of artificial intelligence technology, the global banking industry is facing unprecedented challenges. According to a recently released report, the banking sector is expected to lay off up to 200,000 employees in the next three to five years. This figure reflects the trend of artificial intelligence gradually replacing traditional manual jobs.
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The report shows that the chief information officers and technology officers surveyed generally believe that the introduction of artificial intelligence will bring significant changes to the banking operation model. The survey mentioned that the functions of back-office and middle-office positions will be most impacted, especially those involving routine and repetitive tasks. The survey indicates that the average expected net layoff rate will reach 3%. Among the 93 respondents, nearly a quarter believe that the layoff range could be between 5% and 10%.
The report's author, BI senior analyst Tomasz Noetzel, stated that as intelligent robots gradually take over customer management functions, the way customer service is delivered will change, meaning that customer-facing jobs will face enormous challenges. Although artificial intelligence will not completely replace these positions, it will lead to a transformation of the workforce, prompting employees to adapt to new technological work environments.
In this context, the report also points out that artificial intelligence will bring profound changes to the banking industry, helping the sector enhance its profitability. It is expected that by 2027, banks' pre-tax net profits will be 12% to 17% higher compared to scenarios without the introduction of artificial intelligence, with total profits potentially increasing by up to $180 billion. Additionally, about 80% of respondents believe that generative artificial intelligence will drive productivity and revenue increases of at least 5% in the next three to five years.
In light of this trend, the working environment and functional structure of the banking industry will undergo significant adjustments. Major banks, such as Citigroup, JPMorgan Chase, and Goldman Sachs, have already recognized this change and begun actively planning response strategies.
Key Points:
💼 The global banking industry is expected to lay off up to 200,000 employees in the next three to five years.
🤖 Artificial intelligence will replace a large number of traditional back-office and middle-office positions.
📈 By 2027, artificial intelligence is expected to increase banks' pre-tax net profits by 12%-17%.
