- CIOs and CTOs predict losing 3% of their workforce in the next 3-5 years
- Some say they can see job losses equivalent to 5-10%
- Bank profits could skyrocket from increased productivity
A new one Bloomberg the report has claimed that as many as 200,000 Wall Street jobs could be lost over 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 Chief Information and Technology Officers expect to cut 3% of jobs over the next few years. Almost one in four predicted cuts of between 5-10% of their workforce.
Senior analyst and report writer Tomasz Noetzel added that back-office, middle-office and operations roles are most prone to displacement – essentially, the roles involve routine and repetitive tasks that can be automated to improve efficiency.
AI is set to cost thousands of banking jobs
Although AI and automation threaten to take jobs away from humans, Noetzel said, “AI will not eliminate them completely, rather it will lead to the transformation of the workforce.”
Increased efficiency can lead to significant cost reductions for banks – the report suggests pre-tax profits could be 12-17% higher in 2027 than they are today. About four in five see artificial intelligence increasing productivity and revenue generation by at least 5% over the next three to five years.
However, Bloomberg Intelligence‘s report seems conservative compared to other reports. Last summer, Citi said more than half (54%) of banking jobs are at high risk of being automated.
Although the outlook may seem negative, a separate report from the World Economic Forum reveals that all hope is not 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.
The same WEF report echoed Bloomberg Intelligence‘s findings revealing that bank tellers are among the most vulnerable workers.
