Citigroup has stated that artificial intelligence (AI) is likely to displace more jobs in the banking sector than in any other, as the technology is poised to revolutionize consumer finance and increase worker productivity. In a new AI report released on Wednesday, the bank highlighted that approximately 54% of jobs in the banking sector have a high potential for automation. Additionally, another 12% of sector functions could be enhanced with this technology.
In the past year, the world's largest banks have begun experimenting with AI, encouraged by the promise that this technology will help them increase staff productivity and reduce costs. For instance, Citigroup has announced that it will equip its 40,000 programmers with the ability to experiment with different AI technologies. The company has also used generative AI, which can produce phrases, essays, or poetry based on simple user questions or commands, to quickly review hundreds of pages of regulatory proposals.
Other major banks are also adopting AI. JPMorgan Chase is recruiting talent, and its CEO, Jamie Dimon, has said he believes the technology will allow employers to reduce the workweek to just 3.5 days. Deutsche Bank AG uses artificial intelligence to analyze wealthy clients' portfolios, while ING Groep NV uses it to identify potential defaulters.
What is the Future of the Sector?
Generative AI "has the potential to revolutionize the banking sector and improve profitability," says David Griffiths, Chief Technology Officer of Citigroup, in a statement accompanying the new report. "At Citi, we are focused on implementing AI in a safe and responsible way to amplify the power of Citi and our people."
Even if AI replaces some roles in the sector, Citigroup asserts that the technology may not lead to a decrease in the number of staff. Financial companies will likely need to hire a group of AI managers and compliance officers focused on AI to help ensure their use of the technology aligns with regulations. Additionally, new technologies have not always led to staff cuts. An example provided by Citigroup is the number of human tellers, which surged from the 1970s to the mid-2000s, even after the introduction of ATMs.
