World banks will cut about 200 thousand jobs in the next 3-5 years as artificial intelligence encroaches on the tasks currently performed by people. This is reported by Bloomberg, according to UNN.
Details
According to a survey of IT executives at large financial institutions, the average staff reduction may be 3%, although almost a quarter of respondents expect a reduction of 5% to 10%.
According to Bloomberg Intelligence senior analyst Tomasz Notzel, any job involving routine, repetitive tasks is at risk.
AI will not eliminate them completely, but rather, it will lead to a transformation of the workforce
Despite the employment risks, analysts believe that the transformation of the workforce will boost productivity.
For example, artificial intelligence can increase bank profits by up to 17% in 2027, and 80% of executives predict a 5% increase in efficiency in the coming years
It is also noted that banks, which spent years modernizing their IT systems to speed up processes and cut costs after the financial crisis, have begun to use a new generation of AI tools that can further improve productivity.
In a June report, Citi said that artificial intelligence is likely to displace more jobs in the banking industry than in any other sector, with about 54% of banking jobs having a high potential for automation
However, many firms emphasize that the change will result in a shift in roles due to technology, not a complete replacement.
As reported, in early August last year, the European Union enacted a law on artificial intelligence, which is called the first such regulatory document in the world.
Earlier, International Monetary Fund Managing Director Kristalina Georgieva said that the development and spread of artificial intelligence technologies would hit the global labor market "like a tsunami.
Recall
Zoom Communications Inc. has announced a name change, leaving aside "Video Communications" to position itself as an AI-focused workplace platform.