Experts warn AI advances could lead to 200,000 banking jobs being cut this year (www.techradar.com)

A new report from Morgan Stanley warns that as many as 200,000 jobs in European banking could be lost by 2030 due to advances in artificial intelligence (AI), particularly impacting back- and middle-office roles like risk management and compliance. This figure represents about 10% of the continent's finance workforce across 35 major banks. Analysts note that AI can enhance operational efficiency by approximately 30%, which poses a significant threat to many traditional banking roles. The industry has already seen substantial job losses linked to physical bank closures, with over 6,000 locations shut down in the UK since 2015. While some leaders like Jamie Dimon of JPMorgan Chase argue that reducing entry-level positions could jeopardize the long-term success of the sector by disrupting the career ladder, there is a growing concern that the rapid integration of AI could exacerbate job cuts, echoing trends observed in technology and retail sectors. Dimon suggests that rather than eliminating jobs, AI could create opportunities for improved work-life balance and potentially reduce working hours. As compliance-friendly AI tools become more prevalent, the banking industry may experience shifts similar to those seen in other sectors, highlighting the urgent need for a balanced approach to workforce management amid technological advancements.