Wall Street Job Losses May Top 200,000 as AI Replaces Roles
(Bloomberg) — Global banks will cut up to 200,000 jobs in the next three to five years as artificial intelligence invades tasks currently performed by human workers, according to Bloomberg Intelligence.
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Chief information and technology officers surveyed by BI said on average they expect to cut a net 3% of their workforce, according to a report released Thursday.
The back office, middle office, and operations are likely to be most at risk, according to Tomasz Noetzel, senior analyst at BI who wrote the report. “Any job that involves mundane, repetitive tasks is at risk,” he said workforce transformation”.
Nearly a quarter of the 93 respondents predict a steeper decline in the overall workforce, between 5% and 10%.Bi’s peer group includes Citigroup Inc., JPMorgan Chase & Co. and Goldman Sachs Group Inc.
The findings point to industry-wide changes that are helping to improve earnings. Banks could see pre-tax profits rise 12% to 17% more than they otherwise would have, adding up to $180 billion to their totals as AI. provides increased productivity, according to BI Eight of the respondents expect that generative artificial intelligence will increase productivity and generating revenue by at least 5% over the next three to five years.
Banks, which spent years upgrading their IT systems to speed up processes and reduce costs in the wake of the financial crisis, are flocking to a new generation of AI tools that can further improve productivity.
Citi said in a report in June that AI is likely to replace more jobs in banking than any other industry.About 54% of jobs in the banking industry have high potential for automation, Citi said at the time.
However, many firms have stressed that the shift will result in the roles being reversed by the technology, not entirely. Theresa Heitsenreter, who oversees JPMorgan’s AI efforts, said in November that the bank’s adoption of generative AI has so far adds jobs.
Jamie Dimon, JPMorgan’s chief executive, told Bloomberg Television in 2023 that AI will likely dramatically improve the quality of life for workers, even if it eliminates some positions They won’t have cancer,” Dimon said at the time. “And they’ll probably work three and a half days a week.”
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