Citigroup released a report Wednesday forecasting that artificial intelligence (AI) will automate 54% of jobs in the banking industry, the highest potential impact of any sector.
The report also suggests that an additional 12% of banking roles could be significantly augmented by AI technologies.
David Griffiths, Citigroup’s chief technology officer, emphasized the potential of generative AI, stating, “It has the potential to revolutionize the banking industry and improve profitability. At Citi, we’re focused on implementing AI in a safe and responsible way to amplify the power of Citi and our people.”
Citigroup isn’t alone in recognizing AI’s potential in finance.
Industry leaders such as JPMorgan Chase, Deutsche Bank, and ING Groep are already utilizing AI in various areas, from coding and research to portfolio screening and default prediction.
JPMorgan CEO Jamie Dimon even suggested that AI could enable a 3.5 day workweek.
However, widespread job displacement may not necessarily lead to overall headcount reductions in the industry.
Financial institutions will likely need to expand their workforces with specialized AI managers and compliance officers to ensure responsible and regulation-compliant AI deployment.
“I think we're moving into a period when, for the first time ever, we may have things more intelligent than us,” says artificial intelligence pioneer Geoffrey Hinton. https://t.co/g6OnXWxqbM pic.twitter.com/z8AETnHEdq
— 60 Minutes (@60Minutes) June 16, 2024
Citigroup noted that the introduction of ATMs actually coincided with an increase in human teller employment from the 1970s through the mid-2000s.
Looking beyond banking, Citigroup’s analysis highlights several other sectors facing significant job impact from AI.
Insurance, with 48% of roles primed for automation, faces the second highest disruption potential after banking.
Energy and capital markets follow closely at 43% and 40% of jobs respectively.
Even the least exposed industries, such as automotive and public service, still face a 30% automation potential.
As AI continues to advance rapidly, it’s evident that no industry will remain unaffected.
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While the ultimate impact on jobs remains uncertain, institutions like Citigroup are proactively embracing the technology to drive efficiency and stay competitive.