A new Bloomberg Intelligence report reveals that artificial intelligence could lead to approximately 200,000 job cuts in global banks over the next three to five years, marking a significant transformation in the financial services sector. [link]

Citi bank in another report had said that 54% of their jobs have high automation potential.

Citi said in a report in June that AI is likely to displace more jobs across the banking industry than in any other sector. About 54% of jobs across banking have a high potential to be automated, Citi said at the time.

Together this job loss might result into around $180B savings for banks all together. This also means that tech companies who are into AI and automation will be responsible for executing this plan and hence would earn more from the banks.

Which are these jobs that can be automated? Customer support is certainly one of them but what could be others ? We do not have detailed intelligence on that yet but clearly the banks themselves have figured it out.

Who stands to win ?

Very likely foundational model companies such as OpenAI, Google, Microsoft, Anthropic all could stand to gain here. But also, specific banking functions might be outsourced to other products which too might end up becoming large companies.

Could the customer service be handled by one large company building models specific to their client bank ? Perhaps yes.

Risk analysis, mortgage approvals, data crunching, fraud detection, etc. could also be replaced with 100% AI agents. This is already underway for new banks but the old banks will have to get on it as well.