Artificial intelligence and robotics could cut the number of banking jobs by 30% in the next five years, according to Vikram Pandit, the former Chief Executive Officer of Citigroup and now the Chief Executive of New York-based investment firm Orogen Group.
“Everything that happens with artificial intelligence, robotics and natural language — all of that is going to make processes easier,” said Pandit in an interview with Bloomberg in Singapore. “It’s going to change the back office.”
In a March 2016 report, Citigroup estimated a 30 percent reduction between 2015 and 2025, mainly due to automation in retail banking, according to Bloomberg. That would see full-time jobs drop by 770,000 in the U.S. and by about 1 million in Europe, Citigroup said.
The banking industry is already using technologies to automate operations. Bank of America Corp.’s Chief Operating Officer Tom Montag said in June the firm will keep cutting costs by finding more ways technology can replace people, reports Bloomberg.