Global banks are bracing for sweeping workforce changes as artificial intelligence (AI) reshapes the industry, potentially eliminating up to 200,000 jobs over the next three to five years, according to a Bloomberg Intelligence (BI) report. The cuts, averaging 3% of the workforce, primarily target roles in back office, middle office, and operations. Routine and repetitive tasks, including customer services and know-your-customer duties, are particularly vulnerable, BI senior analyst Tomasz Noetzel noted.

However, the transformation isn't entirely bleak. AI is expected to drive significant productivity and efficiency gains, with 80% of surveyed banks predicting a 5% or greater boost in productivity and revenue within the same period. This surge in efficiency could elevate global banks’ pretax profits by 12% to 17%, adding up to $180 billion by 2027.

Despite job displacement concerns, many firms stress that AI is augmenting roles rather than replacing them outright. Jamie Dimon, CEO of JPMorgan Chase, emphasized AI’s potential to enhance quality of life, predicting shorter work weeks and advances in health and technology. Similarly, Teresa Heitsenrether, who leads JPMorgan's AI initiatives, said the technology is reshaping roles rather than eliminating them.

Banks have invested heavily in AI, modernizing IT systems to streamline operations and reduce costs post-financial crisis. Generative AI is now being integrated across key functions, from client services to compliance. Citi estimates that 54% of banking jobs are highly automatable, suggesting the industry is more susceptible to AI-driven disruption than others.

While these shifts pose challenges, they also herald opportunities. As AI reshapes banking, the focus is on workforce transformation—enabling employees to transition into roles that leverage human creativity and problem-solving alongside advanced technology.

Global banks are bracing for sweeping workforce changes as artificial intelligence (AI) reshapes the industry, potentially eliminating up to 200,000 jobs over the next three to five years, according to a Bloomberg Intelligence (BI) report. The cuts, averaging 3% of the workforce, primarily target roles in back office, middle office, and operations. Routine and repetitive tasks, including customer services and know-your-customer duties, are particularly vulnerable, BI senior analyst Tomasz Noetzel noted.

However, the transformation isn't entirely bleak. AI is expected to drive significant productivity and efficiency gains, with 80% of surveyed banks predicting a 5% or greater boost in productivity and revenue within the same period. This surge in efficiency could elevate global banks’ pretax profits by 12% to 17%, adding up to $180 billion by 2027.

Despite job displacement concerns, many firms stress that AI is augmenting roles rather than replacing them outright. Jamie Dimon, CEO of JPMorgan Chase, emphasized AI’s potential to enhance quality of life, predicting shorter work weeks and advances in health and technology. Similarly, Teresa Heitsenrether, who leads JPMorgan's AI initiatives, said the technology is reshaping roles rather than eliminating them.

Banks have invested heavily in AI, modernizing IT systems to streamline operations and reduce costs post-financial crisis. Generative AI is now being integrated across key functions, from client services to compliance. Citi estimates that 54% of banking jobs are highly automatable, suggesting the industry is more susceptible to AI-driven disruption than others.

While these shifts pose challenges, they also herald opportunities. As AI reshapes banking, the focus is on workforce transformation—enabling employees to transition into roles that leverage human creativity and problem-solving alongside advanced technology.