European banks eliminate 200 thousand job opportunities due to the expansion of artificial intelligence

New surveys have determined that European banks plan to eliminate at least 200,000 job opportunities due to the expansion of artificial intelligence.

More than 200,000 banking jobs in Europe could be lost by 2030 as banks move towards artificial intelligence and close physical branches, according to a new Morgan Stanley analysis reported by the Financial Times. This figure includes about 10% of the workforce of 35 big banks.

Artificial intelligence is now threatening banking jobs as well

The greatest effect of the reduction of forces in behind-the-scenes operations will be risk management and regulatory compliance; Low-interest but critical parts where algorithms are able to work with spreadsheets faster and more efficiently than humans. Banks are hoping for these changes due to the expected productivity increase of about 30%.

This retrenchment will not be limited to Europe. Goldman Sachs warned its US staff in October that layoffs and hiring freezes would occur by the end of 2025, part of an artificial intelligence program called OneGS 3.0 that targets everything from customer onboarding processes to regulatory reporting.

Some institutions have already reduced the workforce. Dutch bank ABN Amro plans to cut a fifth of its workforce by 2028, while the CEO of Société Générale has declared that nothing is sacred. However, some banking leaders have a different opinion. A JPMorgan Chase executive said that if young bankers never learn the basics, it could have a negative impact on the banking industry in the future.

Many artificial intelligence experts had previously warned about widespread unemployment as a result of the expansion of artificial intelligence, and now we see that the scope of these changes has also been extended to the banking industry, and bank employees see their jobs in danger.