Top executives at major United States banks say artificial intelligence will significantly raise productivity across their organisations and will likely lead to job reductions.
JPMorgan Chase consumer and community banking chief Marianne Lake said at a financial services conference that the bank has doubled its productivity to 6 percent with artificial intelligence, compared to 3 percent without it. She added that productivity among operation specialists is expected to rise by 40 percent to 50 percent. According to her, higher productivity will mean fewer jobs on a net basis.
Artificial intelligence is now seen as the largest technological shift since the rise of the internet. It has driven trillions in investment and major stock market gains, but has also created concern about chip shortages, regulatory oversight, and the risk of large scale job displacement.
Wells Fargo chief executive Charlie Scharf said the bank has not cut staff yet, but noted that “we are getting a lot more done” because of artificial intelligence. He added, “There are other places out there where we are gonna be able to look at and figure out how are we able to do more with less people.” He also said that artificial intelligence will not fully replace humans but will change how work is done.
PNC Financial chief executive Bill Demchak said the bank’s head count is the same as it was ten years ago when the bank was about one third of its current size. He said this was achieved through automation and branch optimisation. “You know, the big buzz right now is it is going to continue because artificial intelligence is going to drive it. But we have been on a journey of automation for years, and artificial intelligence may well be an accelerant,” he said. “It will most definitely be an accelerant in our tech headcount.”
Citigroup incoming chief financial officer Gonzalo Luchetti said the bank has achieved a 9 percent productivity increase in its coding operations. He added that artificial intelligence supports the bank’s self service tools and helps staff manage calls more efficiently in the United States personal banking unit.
In October, one major bank informed employees of expected job cuts and a hiring slowdown as it aims to use artificial intelligence to improve productivity. Another leading United States bank recently said it plans to spend billions of dollars on technologies such as artificial intelligence to raise banker productivity and increase revenue.
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