Since the emergence of artificial intelligence, there has been speculation that it will replace humans in many areas. According to experts, banking is one of the sectors where AI could take the reins. According to an analysis by Morgan Stanley, this is expected to affect up to 200,000 jobs in European banks in the coming years. AI is expected to perform the work of a wide range of employees and even surpass their productivity.
US banks are already reporting changes
According to Reuters, several financial institutions are already seeing the positive impact of artificial intelligence on the US banking sector. Marianne Lake of JPMorgan Chase says that the introduction of AI tools into the sector is delivering visible productivity gains and is becoming one of the most important technologies for the industry. According to Marianne Lake, analysis results show that productivity in some areas has as much as doubled.
The situation is viewed similarly by Charlie Scharf, CEO of the bank Wells Fargo. He says that although large-scale layoffs have not yet occurred, they can accomplish far more work with fewer people than before.
Mass layoffs or a new form of employment?
Although banks are already integrating AI tools and there has not yet been a major outflow of employees, expert forecasts paint a different picture. According to a report published by Fortune and prepared by Citigroup, 54% of jobs in the financial sector have a high potential for AI automation, a higher percentage than in other industries.
AI is used in banking not only to automate routine tasks, but also for data analytics, fraud detection, and the personalization of client services. Research into AI in banking confirms that these technologies can, for example, analyze credit risk or identify suspicious transactions faster than traditional systems.
Other experts, however, view the future of AI in banking more positively. According to Accenture, a global company specializing in business strategy and digital technologies, AI could instead create new jobs in the sector. According to its data, 76% of banks expect an increase in the number of AI technology professionals. As AI's influence on banking grows, it will be necessary to focus on emerging areas such as AI regulation and ethics, as well as more robust cybersecurity.
AI as the most important investment
Because AI can increase banks' revenues and reduce their long-term costs, investing in AI technologies is already becoming the number one priority for many institutions. According to Reuters, for example, Bank of America is already planning to spend billions of dollars on technologies that can help it generate higher profits. It reportedly sees this as the only way to keep pace with competitors and respond quickly to market changes.
What does this mean for clients and employees?
Ordinary clients are unlikely to notice the changes directly. Artificial intelligence is already commonplace in customer support. However, it will have a greater impact on employees whose work can easily be automated using AI.
In the coming years, we will therefore likely have to prepare for a transformation of the workforce structure and be able to adapt to entirely new areas and positions. According to Morgan Stanley's analysis for the Financial Times, back-office and risk management employees will be particularly at risk. AI algorithms can study the necessary materials faster and more efficiently than humans, by as much as 30%.
Source: TechCrunch, Reuters, Fortune
