Report warns thousands of Wall Street jobs could soon be replaced by AI

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CIOs and CTOs predict losing 3% of their workforce in the next 3-5 years
Some say they may see job losses equating to 5-10%
Banking profits could skyrocket from boosted productivity

A new Bloomberg report has claimed as many as 200,000 jobs on Wall Street could be lost over the next three to five years as artificial intelligence becomes more integrated into workflows.

The data comes from a Bloomberg Intelligence survey, which found Chief Information and Technology Officers are expecting to cut 3% of jobs over the next few years. Nearly one in four predicted job cuts of between 5-10% of their headcounts.

Senior analyst and report writer Tomasz Noetzel added back office, middle office and operations roles are most at risk of displacement – essentially, the roles involve routine and repetitive tasks that can be automated for improved efficiency.

AI is set to cost thousands of banking jobs

Although AI and automation is threatening to take work away from humans, Noetzel said, “AI will not eliminate them fully, rather it will lead to workforce transformation.”

Boosted efficiency could see significant cost reductions for banks – the report suggests pre-tax profits could be 12-17% higher in 2027 than they are today. Around four in five see AI increasing productivity and revenue generation by at least 5% in the next three to five years.

However, Bloomberg Intelligence’s report seems conservative when compared with other reports. Last summer, Citi said that more than half (54%) of banking jobs are at high risk of being automated.

While the outlook may seem negative, a separate report from the World Economic Forum reveals that all hope is not lost. By the end of the decade across all sectors, WEF says we could see a net increase of 78 million jobs, even though 92 million workers could be displaced.

That same WEF report echoed Bloomberg Intelligence’s findings, revealing that bank tellers are among the most at-risk workers.

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With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!