Banks May Cut 2,00,000 Jobs Globally in 5 Years as AI Replaces Human Tasks: Report

New Delhi (The Uttam Hindu): Recent reports indicate that the banking sector is set to face significant job reductions due to the increasing adoption of artificial intelligence (AI). An analysis suggests that up to 2,00,000 jobs may be cut globally in the next five years as AI technologies automate tasks traditionally performed by humans. This trend reflects a broader shift across industries, where companies are turning to AI to enhance efficiency and reduce costs.

A survey conducted by the World Economic Forum revealed that 41% of employers worldwide plan to downsize their workforces as AI takes over certain roles. While many companies acknowledge the potential for job displacement, they are also focusing on reskilling employees to work alongside AI. Approximately 77% of surveyed companies plan to improve their workforce's skills between 2025 and 2030.

The financial services industry is particularly vulnerable with estimates suggesting that around 30% of current employee hours could be automated by 2030. This shift is prompting banks to rethink their operational structures and workforce strategies. Although job losses are anticipated, there is an expectation that new technologies will create new roles, though the overall effect on employment remains debated. As AI continues to evolve and integrate into various sectors, including banking its implications for employment are significant, necessitating a focus on training and adaptation for the workforce.