How AI and Robots Could Eliminate 1.3 Million Wall Street Jobs In Next 10 Years

Finance is among the best paying industries. Which is why AI and other technologies are being introduced, in order to reduce costs and improve profits for those who will remain employed. JL


Allana Ahktar reports in Business Insider:

Jobs in banking are some of the most expensive. Starting analysts make $91,000 in base pay, while managing directors can earn $1 million after bonuses. The industry could add $512 billion in global revenue by 2020 with the use of intelligent automation. Job losses or reassignments will impact 1.3 million bank workers in the US alone by 2030. Banks’ investment into automation is well under way. A detailed 2018 report noted that banks are already using AI to mimic bank employees, automate processes, and preempt problems.

• Jobs in banking and the financial services industries continue to be the most popular in 2019.
• Despite their popularity, a new report predicts that 1.3 million bank workers will lose their jobs or be reassigned due to automation.
• Banks have already begun investing in artificial intelligence, and recognize the technology will displace workers.

Jobs in banking are some of the most sought after for job seekers – but plenty of roles may not be around much longer.
Despite a year of scandals that entangled many of the country’s largest banks, the desire to work at these companies remains high, according to a new report by LinkedIn. Some of the more high-profile scandals include Deutsche Bank‘s alleged involvement in a global money-laundering scheme and accusations against Well Fargo‘s auto-loan and mortgage practices.
Nonetheless, Bank of America, Goldman Sachs, Citigroup, Wells Fargo, and JPMorgan Chase remain five of the most popular places to work in 2019. LinkedIn attributes the popularity to banks offering increasingly tech-focused jobs that attract talented software engineers and developers out of college.

“The reality is that if somebody wants to learn finance and strategy, these banks are still the places to be trained and developed,” Heather Hammond, co-head of the global banking and markets practice at Russell Reynolds Associates, told LinkedIn.
While job seekers may be flocking to banks at the current time, a new report revealed a million jobs in the industry could disappear in just over 10 years. Job losses or reassignments will impact 1.3 million bank workers in the US alone by 2030, according to a new report from British insights firm IHS Markit. Especially at-risk roles include customer-service reps, financial managers, and compliance and loan officers.
Though the most at-risk jobs seem to be lower-paying, jobs in banking as a whole are some of the most expensive in the country. Starting analysts make $91,000 in base pay, while managing directors can earn almost $1 million after bonuses. In fact, the industry could add a whopping $512 billion in global revenue by 2020 with the use of intelligent automation, according to a 2018 report from Capgemini.
While the use of AI remains sparse, and the technology is still basic, a boost in revenue will increase the adoption of automation, Business Insider analyst Lea Nonninger reports.
Unfortunately for job seekers, banks’ investment into automation is well under way. In fact, a detailed 2018 report from Business Insider Intelligence noted that banks are already using AI to mimic bank employees, automate processes, and preempt problems. JPMorgan is cleaning thousands of databases to make room for machine learning tech. Citi president Jamie Forese said in 2018 that robots could replace as many as 10,000 human jobs within five years.
Laura Barrowman, chief technology officer at the Swiss investment bank Credit Suisse, revealed the company is already retraining employees whose jobs have been displaced by AI: “Globally, if you look at cyber skills, I think there is a deficit,” Barrowman told Business Insider’s panel at the World Economic Forum earlier this year. “There is such a shortage of skills, and you need people who have that capability.”