- CIOs and CTOs predict losing 3% of their workforce in the next 3 to 5 years
- Some say they may see job losses equivalent to 5-10%
- Bank profits could soar thanks to increased productivity
a new Bloomberg One report claims that up to 200,000 jobs could be lost on Wall Street in the next three to five years as artificial intelligence becomes more integrated into workflows.
The data comes from a Bloomberg Intelligence survey, which found that CIOs expect to cut 3% of jobs in the coming years. Almost one in four predicted job cuts of between 5% and 10% of their workforce.
Senior analyst and report writer Tomasz Noetzel added that back office, middle office and operations roles are most at risk of displacement; Essentially, roles involve routine, repetitive tasks that can be automated to improve efficiency.
AI will cost thousands of banking jobs
Although AI and automation threaten to take jobs away from humans, Noetzel said, “AI will not eliminate them completely, but will lead to a transformation of the workforce.”
Greater efficiency could translate into significant cost reductions for banks: the report suggests that pre-tax profits could be 12% to 17% higher in 2027 than today. About four in five believe AI will increase productivity and revenue generation by at least 5% over the next three to five years.
However, Bloomberg IntelligenceThe report appears conservative compared to other reports. Last summer, Citi said that more than half (54%) of banking jobs are at high risk of being automated.
While the outlook may seem bleak, a separate report from the World Economic Forum reveals that not all hope is lost. By the end of the decade, across all sectors, the WEF says we could see a net increase of 78 million jobs, although 92 million workers could be displaced.
That same WEF report echoed Bloomberg IntelligenceThe findings reveal that bank tellers are among the workers most at risk.
