Wall Street prepares for 200,000 job cuts as AI takes over: Report
AI039s rise may cost 200000 Wall Street jobs boosting efficiency profits and reshaping roles in finance
As artificial intelligence (AI) continues to advance, the financial industry is bracing for significant job losses.
Wall Street banks, including industry giants like Citigroup, JPMorgan, and Goldman Sachs, are expected to cut up to 200,000 jobs over the next three to five years. The reason? AI is rapidly taking over tasks traditionally performed by human workers, particularly in back-office, middle-office, and operations roles. This shift is not just about cutting costs—it’s also about boosting productivity and profits.
AI's IMPACT ON BANKING JOBS
The job cuts are largely expected to impact positions involving routine and repetitive tasks, such as customer service and know-your-customer (KYC) roles.
According to Bloomberg Intelligence (BI), AI tools will streamline operations, leading to fewer human workers required for these functions. However, it’s important to note that while jobs will be transformed, they won’t be entirely eliminated.
Tomasz Noetzel, BI’s senior analyst, pointed out that AI’s impact would primarily result in workforce transformation, not total job loss.
The role of AI in customer service is particularly noteworthy, as bots are expected to handle more of the client-facing tasks, reducing the need for human intervention. Jobs that demand higher-level cognitive skills may be less vulnerable, but the overall trend is clear: the banking workforce will need to adapt to new technological realities.