AI Revolution: European Banks Could Slash 20% of Jobs

The rapid spread of artificial intelligence may enable European banks to reduce their headcount by as much as a fifth over the “shorter term,” according to Morgan Stanley analysts.

AI will result in estimated productivity gains of 30%, the analysts including Giulia Miotto said in a research note on Thursday. The development is likely to result in job cuts between 10% and 20% over the next five years, they said, adding that much of the decrease will be achieved through voluntary departures including retirements.