June 24, 2024 In a recent report by Citigroup, the global investment firm has projected that artificial intelligence (AI) could lead to the displacement of more than 50% of jobs in the banking industry. This revelation highlights the profound impact that AI and digital transformation are having on the workplace.
Citigroup’s report indicates that 54% of roles in the banking sector are at risk of being displaced by AI. Additionally, another 12% of jobs could be augmented by AI technologies.
Besides banking, other sectors facing significant job displacement risks include insurance (48%), energy (43%), and capital markets (40%).
The report underscores the transformative potential of generative pre-trained transformers (GPTs) like ChatGPT. While these technologies create new opportunities for growth and innovation, they also disrupt existing job markets, creating both winners and losers.
Banking and Finance:Automation and AI are expected to play a pivotal role in reshaping the banking and finance sectors. This shift will affect market share, employment, and client experiences significantly.
Profit Growth:Citigroup estimates that the global banking sector’s profit pool could grow by 9%, or $170 billion, from AI adoption, increasing from approximately $1.7 trillion to about $2 trillion.
David Griffiths, chief technology officer at Citigroup, remarked on the rapid adoption of generative AI across industries, particularly in banking. He emphasized that AI has the potential to revolutionize the industry and enhance profitability.
The Citigroup report highlights the dual nature of AI’s impact on the economy: it fosters growth and innovation while also posing significant challenges to traditional job roles. As the banking industry braces for this technological shift, the focus will be on balancing the benefits of AI with the need to manage its disruptive effects on the workforce.
