Over half of banking jobs are at risk of automation

A new report by Citigroup has found that over half of banking jobs are at risk of automation. The report found that 54% of banking jobs have a high potential to be automated.

The report which analyses the role that artificial intelligence (AI) might play in changing the way both consumers and corporates bank indicated that the banking industry is likely to see more job displacement due to artificial intelligence (AI) than any other sector. Citigroup also found that an additional 12% of roles in the industry could be augmented with AI technology.

Despite the potential job losses, the report suggests that AI may not lead to a drop in headcount, because banks will need to hire AI managers and compliance officers to ensure regulatory compliance. The report highlights the increasing use of AI in the banking industry, with banks such as Citigroup, 

The report says AI could drive productivity gains for banks by automating routine tasks, streamlining operations, and freeing up employees to focus on higher value activities. Generative AI will likely have a big impact on internal facing tasks such as content and information management, coding, and software.

The growth of AI may lead to fewer low-skilled roles in operations and technology, but governance and compliance roles will continue to grow. Our survey responses suggest AI talent availability is a challenge for banks and others. Talent wars are not over. Humans are still in demand.

Integration of AI-powered bots into retail and corporate banking represents a significant potential transformation, offering clients benefits such as automated decision making and the search for best offers, and banks enhanced operational efficiency.

From the likely use of autonomous agents seamlessly executing client decisions in the background, to productivity gains released by unlocking better data insights, banking bots are set to revolutionize all aspects of banking, according to the report.

David Griffiths, Citi Chief Technology Officer, said “The pace of adoption and impact of Gen AI across industries has been astounding as it becomes clear that it has the potential to revolutionize the banking industry and improve profitability. At Citi, we’re focused on implementing AI in a safe and responsible way to amplify the power of Citi and our people.”

Ronit Ghose, Head of Future of Finance, Citi Global Insights, said “AI will transform finance by empowering clients, creating new jobs and increasing competition. AI will make money and clients smarter. In the future, every client will have an AI powered assistant in their pocket, making their financial lives better.”