AI Expected to Replace More Than 200,000 Wall Street Jobs

A recent Bloomberg Intelligence report predicts that global banks may eliminate up to 200,000 positions over the next three to five years as AI increasingly takes over tasks currently performed by human workers. Based on a survey of 93 respondents, the report indicates that banks expect to cut three percent of their workforce on average. However, nearly 25 percent of respondents predict a more significant decline, with workforce reductions ranging from five to 10 percent.

In June, Citi warned that AI is likely to displace more jobs across the banking industry than in any other sector, noting that about 54 percent of banking jobs have a high potential to be automated. While some firms acknowledged AI will replace certain roles, many said the shift will primarily result in roles being changed by technology rather than replaced altogether. Teresa Heitsenrether, who oversees JPMorgan’s AI efforts, noted that the bank’s adoption of generative AI has augmented jobs.

AI Adoption Driving Layoffs

AI adoption is expected to bring significant cost savings and increased profitability to the banking industry. According to Bloomberg Intelligence, banks could see pretax profits by 2027 that are 12 to 17 percent higher than they would otherwise have been, adding as much as $180 billion to their combined bottom line.

Eight in 10 respondents expect generative AI to increase productivity and revenue generation by at least five percent in the next three to five years. JPMorgan CEO Jamie Dimon has highlighted the potential of AI to improve quality of life, suggesting that while some positions may be eliminated, technology will transform work patterns and job functions.

The Future of Work

There is hope in Jamie Dimon’s view of the future of work, where technology allows people to work fewer hours and improves their quality of life. Even if AI eliminates some jobs, he told Bloomberg Television in 2023, it will significantly improve workers’ quality of life.

“Your children are going to live to 100 years and not have cancer because of technology,” Dimon said. “They will likely work three and a half days a week.”  But for individuals who lose their jobs because of AI, the situation can be more difficult.

In the technology sector, Meta CEO Mark Zuckerberg has indicated that AI could soon replace mid-level software engineers. In a recent interview, Zuckerberg noted that, by 2025, AI could function as a mid-level engineer capable of writing code, potentially automating roles that currently command mid-six-figure salaries. In a wide-ranging interview on the Joe Rogan Experience, Zuckerberg said that the AI replacement strategy might be an expensive endeavor but the long-term potential of replacing these mid-level engineers is too big to pass up.

Interested in a career in AI? Read our AI jobs salary report  to see what types of roles are available and how they pay.
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