Citi Predicts AI Will Replace More Finance Jobs Than Any Other Field
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Citigroup Anticipates AI-Induced Job Displacement in Banking Sector
Citigroup Inc. predicts that artificial intelligence (AI) will impact the banking industry more significantly than any other sector, transforming consumer finance and enhancing worker productivity. A recent report from Citigroup reveals that approximately 54% of banking jobs are highly susceptible to automation, with an additional 12% potentially being augmented by AI.
The trend of exploring AI has gradually taken hold among the world's largest banks over the past year, driven by the promise of increased productivity and reduced operational costs. At Citigroup, 40,000 coders are being encouraged to experiment with various AI technologies. The firm has already utilized generative AI, which can generate text such as sentences, essays, or poems based on user input, to efficiently parse extensive regulatory documents.
Other major financial institutions are also embracing AI. JPMorgan Chase & Co. is actively recruiting AI talent, with CEO Jamie Dimon suggesting that the technology could shorten the workweek to 3.5 days. Deutsche Bank AG employs AI to analyze the portfolios of wealthy clients, while ING Groep NV uses it to identify potential defaulters.
David Griffiths, Citigroup’s chief technology officer, emphasized in a statement that generative AI has the potential to revolutionize the banking industry and increase profitability. He noted that Citigroup is committed to implementing AI safely and responsibly to enhance both the organization's and its employees' capabilities.
Although AI may replace certain roles within the sector, Citigroup posits that this might not necessarily result in a decrease in overall headcount. Financial companies will likely need to recruit a substantial number of AI managers and compliance officers to ensure proper adherence to regulations regarding AI usage. Historically, new technologies haven’t always led to job reductions. Citigroup cites the example of human teller numbers increasing from the 1970s to the mid-2000s despite the advent of automated teller machines.
The banking industry stands at a crossroads where embracing AI could lead to significant changes in job structures and operational efficiencies, aimed at future growth and enhanced service delivery.
