Job Loss in Banking Sector Likely to be Hit Hardest by AI

A report released by Citigroup in late June indicated that there exists the likelihood that artificial intelligence (AI) will “displace more jobs across that banking industry than in any other sector.” Over the last year, the world’s biggest banks have slowly begun to experiment more with AI. Based on Citigroup’s projections, “about 54% of jobs across banking have a high potential to be automated,” with “an additional 12% of roles across the industry to be augmented with the technology.” The New York-based financial organization has tested the ability of “generative AI” to quickly comb through hundreds of pages of regulatory proposals,” as well as exploring its use to “offer custom investment recommendations for wealth clients and to improve cybersecurity offerings.” According to reported statements by Citigroup’s chief technology officer, “Generative AI has the potential to revolutionize the banking industry and improve profitability,” while Jaime Dimon, the chief executive at JPMorgan Chase “believes the technology will allow employers to shrink the workweek to just 3.5 days.” However, per warnings in Citigroup’s latest report, “AI-powered chatbots do have some limitations. In some cases, chatbots struggle to understand slang and they often have difficulty comprehending ambiguous questions, the bank found. “Since AI models are known to hallucinate and create information that does not exist, organizations run the risk of AI chatbots going fully autonomous and negatively affecting the business financially or its reputation.”

Source:    https://www.crainsnewyork.com/banking-finance/citi-sees-ai-displacing-more-bank-jobs-other-sectors