The news of job cuts in the technology sector due to artificial intelligence or AI is already known to everyone. Now it is known that the impact may fall on the banking sector as well. A recent report by investment bank Morgan Stanley has warned that large-scale job losses in the banking sector may occur this year. This information has been published by the Financial Times.
According to the report, around 200,000 jobs in Europe’s banking sector could be at risk by 2030. This is about 10 percent of the total financial sector workforce in Europe. The calculation was made by analyzing data from 35 major banks in Europe.
Which sector will have more impact?
According to experts, the biggest job losses are in the back office and middle office of banks. These include risk management, compliance functions and administrative responsibilities. Using AI in these tasks can increase efficiency up to 30 percent. This can reduce the need for human workers.
There are different opinions
However, not all bank executives are of the same opinion on the impact of AI. Jamie Dimon, chief executive officer of bank JPMorgan Chase, believes that the reduction of junior or entry-level jobs may cause problems in the future in creating skilled workers. According to him, the cost reduction in the short term may have a negative impact in the long term.
Source: Tech Radar
