- CIOs and CTOs predict a 3% loss of their workforce over the next 3 to 5 years
- Some say they could see job losses equivalent to 5 to 10%
- Bank profits could soar on increased productivity
A new Bloomberg One report claims that up to 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 CIOs and technology managers expect to cut 3% of jobs over the next few years. Nearly one in four people predict job cuts of between 5 and 10% of their workforce.
Lead analyst and report writer Tomasz Noetzel added that back-office, middle-office and operations roles are most at risk of displacement – essentially, these roles involve routine, repetitive tasks that can be automated for greater efficiency.
AI will cost thousands of banking jobs
Although AI and automation threaten to take work away from humans, Noetzel said, “AI will not eliminate them completely, but rather it will lead to a transformation of the workforce.”
Increased efficiency could 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 people believe that 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.
Although the outlook may seem negative, a separate report from the World Economic Forum reveals that all hope is not lost. According to the WEF, by the end of the decade, across all sectors, we could see a net increase of 78 million jobs, although 92 million workers could be lost.
This same WEF report echoes Bloomberg Intelligencerevealing that bank tellers are among the most at-risk workers.
