Artificial intelligence is expected to be a boon to the financial sector with a Citi survey forecasting that it will add $170 billion in global banking profits in the coming years.
Artificial intelligence (AI) is expected to boost the banking industry’s profits by 9 percent, or $170 billion, by 2028, according to a Citi report citing a recent client survey. Overall, an overwhelming 93 percent of financial institution respondents said the adoption of AI could improve profitability.
In terms of the functions that will drive gains, the report cited automation of routine tasks, streamlining operations and freeing up employees to focus on activities with higher value. Generative AI will likely have a big impact on internal tasks such as content and information management, coding and software.
Job Market Displacement
With regards to the impact on workers, Citi cites an Accenture research report that said that 65 percent of jobs across banking have a high potential to be automated with an additional 12 percent of roles that could be augmented by tech. Nonetheless, the US lender is optimistic that the workforce will adapt to new changes that will not result in a net job loss.
«Historical technology adoption has not led to reduction of finance workforce but has changed the workforce mix over time,» Citi said. «New jobs are constantly created. For example, the US economy has 3x more compliance officers from 2000 to 2023.»
Read More: AI to Add $170 Billion Profit to Global Banking
