New Delhi:
Artificial Intelligence (AI) is now impacting every industry, and its impact can also be seen in the Financial Services Sector. The increasing trend of AI (AI Adoption) can also bring big changes in the financial sector. As we know that AI can do many technology related tasks quickly and accurately. This is the reason why the financial sector may lose a large part of its workforce, meaning the number of people working in this sector may decrease.

2 lakh jobs at risk in next 3 to 5 years

Due to Artificial Intelligence (AI), there may be a reduction in 2 lakh jobs on Wall Street. According to Bloomberg Intelligence, 200,000 jobs may be cut by major Wall Street banks in the next three to five years.

These will be more affected

The biggest impact of these job cuts will be on the back-office, middle-office and operational departments, where routine and repetitive work is done. Responsibilities such as data analysis, financial trade assessment, and risk evaluation may be particularly impacted, as AI systems can rapidly process large amounts of information and generate insights many times faster than human capabilities.

The future of entry-level positions on Wall Street also looks uncertain, as finance firms may cut their hiring of new employees by up to two-thirds as AI takes over responsibilities previously held by junior analysts.

Although Chief Information and Technology Officer job cuts are expected to average 3%, Tomasz Knoetzel, senior analyst at Bloomberg Intelligence, says AI is more likely to replace these roles rather than eliminate them entirely.

Layoff of 5% to 10% of the workforce

Still, about a quarter of executives at major banks like Citigroup, JPMorgan and Goldman Sachs have estimated they could lay off 5% to 10% of their total workforce.