European banks may lay off 200,000 due to AI

Over 200,000 banking jobs in Europe could disappear by 2030 as banks invest more in AI and close physical branches according to a new analysis by Morgan Stanley reported by the Financial Times. This is equivalent to around 10% of the workforce at 35 major banks.

The biggest cuts are expected in back-office functions, risk management and compliance, where AI can automate much of the work. At the same time, several banks expect to increase efficiency by up to 30%.

JPMorgan Chase VP for Europe, Middle East and Africa Conor Hillery warns that integrating technology should be done carefully.

“What we have to be very careful about in all this eagerness and enthusiasm around AI in the banking world is that people don’t lose sight of the basics and the fundamentals,” he said, according to the report.

According to Hillery, JPMorgan is trying to strike a balance that allows younger bank employees to gain the experience needed for the financial sector of the future — something that otherwise risks creating big problems further down the line.US cybersecurity experts plead guilty to attacking US companies with ransomware – ComputerworldRead More