Major global banks could eliminate up to 200,000 positions over the next three to five years as artificial intelligence technology increasingly takes over tasks traditionally performed by human workers, according to a new Bloomberg Intelligence report.
A survey of chief information and technology officers reveals they anticipate an average 3% reduction in their workforce, with some predicting cuts between 5-10% of total headcount. The study covered major financial institutions including Citigroup, JPMorgan Chase, and Goldman Sachs.
Back office operations, middle office functions, and customer service roles face the highest risk of displacement. AI-powered chatbots are expected to handle client interactions, while automated systems take over routine compliance tasks like know-your-customer procedures.
The technology shift could substantially boost bank profits, potentially adding up to $180 billion to pretax earnings by 2027 - a 12-17% increase driven by AI-powered productivity gains. Eight out of ten survey respondents expect generative AI to boost productivity and revenue by at least 5% within five years.
Banking appears particularly vulnerable to AI disruption, with Citigroup research suggesting 54% of industry jobs have high automation potential. However, some industry leaders emphasize technology will transform rather than completely eliminate roles.
JPMorgan Chase CEO Jamie Dimon offered an optimistic long-term view, predicting AI could lead to shorter workweeks while advancing medical breakthroughs. "Your children are going to live to 100 and not have cancer because of technology," Dimon said, suggesting future generations may work just three-and-a-half days per week.
The findings highlight how AI adoption is reshaping the financial sector, as banks that invested heavily in modernizing systems post-financial crisis now race to harness new AI capabilities for competitive advantage - even as thousands of jobs hang in the balance.