European banks may lay off 200,000 due to AI

"Over 200,000 banking jobs in Europe could disappear by 2030 as banks invest more in AI and close physical branches according to a new analysis by Morgan Stanley reported by the Financial Times. This is equivalent to around 10% of the workforce at 35 major banks. The biggest cuts are expected in back-office functions, risk management and compliance, where AI can automate much of the work."

"At the same time, several banks expect to increase efficiency by up to 30%. JPMorgan Chase VP for Europe, Middle East and Africa Conor Hillery warns that integrating technology should be done carefully."

Over 200,000 banking jobs in Europe could disappear by 2030 as banks adopt more AI and close physical branches, equating to around 10% of the workforce at 35 major banks. The largest reductions are likely in back-office functions, risk management and compliance, where AI can automate many routine tasks. Several banks expect to increase efficiency by up to 30%, enabling headcount reductions while maintaining output. Job losses will concentrate in roles amenable to automation, while customer-facing and strategic positions may be less affected. Industry executives warn that technology integration should be managed carefully to avoid operational risks.

Read at Computerworld