The rapid advancement of artificial intelligence (AI) is pushing the global banking industry into an unprecedented era of workforce transformation. According to the latest survey by Bloomberg Industry Research (BI), as AI increasingly takes over human tasks, up to 200,000 banking jobs worldwide are expected to be cut within the next three to five years.
AI is replacing highly repetitive tasks, forcing the financial industry to confront the issue of workforce transformation. (Image: Screenshot from Pexels)
The survey, conducted with chief information officers and chief technology officers from major Wall Street firms, reveals an average projected net job reduction of 3%. Among the 93 respondents, nearly a quarter estimate that total staff reductions will reach 5% to 10%. Participating institutions include major players such as Citigroup, JPMorgan Chase, and Goldman Sachs.
BI Senior Analyst Tomasz Noetzel pointed out that back-office, middle-office, and operations departments face the highest risk. In addition, customer-facing roles such as client service and Know Your Customer (KYC) functions will also be impacted as AI-driven tools begin to handle customer management tasks. Noetzel emphasized that while jobs involving routine and repetitive tasks are most at risk, the goal of AI is not full replacement but to drive workforce transformation.
According to a Bloomberg Industry Research survey, the adoption of AI in the banking sector has led to increased productivity and significantly boosted overall net profits. (Image: Screenshot from Pexels)
Despite the challenge of job cuts, AI is also delivering considerable profit potential for banks. BI forecasts that by 2027, productivity gains from AI could increase pre-tax profits in the banking sector by 12% to 17% compared to a non-AI scenario, with total net profits rising by as much as USD 180 billion.
The survey shows that productivity is widely seen as AI&rsquos key benefit across Wall Street. About 80% of respondents believe generative AI will improve performance and boost revenue by at least 5% over the next three to five years.
In response to this wave of change, leading banks are actively adapting. Goldman Sachs, for instance, has launched an AI assistant to improve work efficiency by summarizing and proofreading emails and translating code&mdashtasks considered highly repetitive.
JPMorgan&rsquos head of AI initiatives noted that the use of generative AI has actually created new job opportunities, suggesting that while AI boosts efficiency, it can also be a source of job creation.
As AI continues to evolve rapidly, the financial industry is undergoing a digital adaptation period&mdashrestructuring its workforce and enhancing employee skillsets to meet the demands of the new AI-driven era.
