Wall Street May Cut 200,000 Jobs As AI Set To Take Over These Roles

Last Updated:January 10, 2025, 15:28 IST

Wall Street Job Cuts: Chief information and technology officers indicated that on average they expect a net 3% of their workforce to be cut, the survey showed.

Wall Street Job Cuts: Banks are modernizing their IT systems to speed up processes and cut costs in the wake of the financial crisis.

Global banks are set to cut as many as 200,000 jobs in the next three to five years as artificial intelligence (AI) takes over jobs, as per Bloomberg Intelligence. Chief information and technology officers indicated that on average they expect a net 3% of their workforce to be cut, the survey showed.

Most at risk are back office, middle office and operations. Customer services could see changes as well while know-your-customer duties are also vulnerable.

This comes as banks are modernizing their IT systems to speed up processes and cut costs in the wake of the financial crisis. Citi said in a report in June last year that AI is likely to displace more jobs across the banking industry than in any other sector. About 54% of jobs across banking have a high potential to be automated, Citi noted.

Teresa Heitsenrether, who oversees JPMorgan’s AI efforts, said that the bank’s adoption of generative AI was so far increasing jobs. Jamie Dimon, JPMorgan’s chief executive officer, said in 2023 that AI is likely to make dramatic improvement in workers’ quality of life. He said, “Your children are going to live to 100 and not have cancer because of technology. And literally they’ll probably be working three-and-a-half days a week."

Washington D.C., United States of America (USA)

News world Wall Street May Cut 200,000 Jobs As AI Set To Take Over These Roles