Artificial Intelligence (AI) to Cause the Layoff of 200,000 Bank Employees in the Next 3-5 Years
The role of humans in customer service in banks will decrease, and job roles will be at risk.
LONON ( WEB NEWS )
Due to artificial intelligence, approximately 200,000 employees will lose their jobs in banks worldwide in the next 3-5 years. According to a Bloomberg report, after these employees are laid off, their jobs will be replaced by AI. Bloomberg based this report on a survey of bank Chief Information Officers (CIOs) and Chief Technology Officers (CTOs). The report indicates that AI will reduce the workforce in banks by 3%. The report highlights that jobs in back offices, middle offices, and operations will be at risk. It further mentions that the role of humans in customer service will decline as AI-powered robots will begin to handle customers. Tasks like “Know Your Customer” (KYC) will largely be managed by artificial intelligence. Jobs involving routine and repetitive tasks will be at risk. However, this does not mean the complete elimination of human roles but rather a shift in workforce dynamics. The most significant point is that the entire banking industry will need to adapt to artificial intelligence. After competing banks start adopting AI, it will become a challenge for others to promote AI as much as possible. Banks will be forced to adopt AI because, on one hand, it will reduce operational costs, and on the other hand, it will eliminate several human-related issues. This is why banks worldwide are in a race to adopt AI. India’s banking industry is also not untouched by this. Every day, you encounter various smart services in different bank apps. These are all the wonders of AI tools. Various experiments are being carried out in this regard. However, due to ethical concerns, the pace of AI adoption in Indian banking is still relatively slow.