"The Financial Times reports that the Morgan Stanley forecast is only for banking jobs in the European Union. It reports, "Cuts are most likely to come from within banks' 'central services' divisions, which include back- and middle-office roles, as well as risk management and compliance positions, according to the analysis of 35 lenders." If this holds true for other regions of the world that are home to the same kind of businesses, the figure has to range nearer to 1 million."
"The forecast is not entirely new. Goldman Sachs told its employees to expect job cuts next year. However, the magnitude of these cuts is nowhere near the new Morgan Stanley forecast. JPMorgan Chase CEO Jamie Dimon said AI would take a large number of jobs, but not just at his company. He believes jobs in a much larger part of the economy will be lost while others are added. Additionally, people may enjoy a shorter work week, he says. No forecast about AI job loss is as terrible as one given by Goldman Sachs. It expects 300 million jobs worldwide will be "lost or diminished" because of AI efficiency. On the other hand, it expects AI to create new employment opportunities."
Morgan Stanley projects AI will eliminate 200,000 banking jobs in Europe by 2030, concentrated in central services, back- and middle-office roles, risk management and compliance. Extrapolation to similar global banking centers could push potential losses toward one million. Goldman Sachs warned employees to expect job cuts but estimated smaller reductions than Morgan Stanley. JPMorgan CEO Jamie Dimon predicts AI will displace many jobs across the broader economy while also creating new roles and enabling shorter workweeks. Goldman Sachs offered a broader estimate that as many as 300 million jobs worldwide could be lost or diminished, balanced by new employment opportunities.
Read at 24/7 Wall St.
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