Wall Street’s embrace of agentic AI promises significant changes in the banking and technology sectors that could threaten jobs and open new roles. As AI promises a $180 billion increase in revenue while threatening 200,000 jobs, Wall Street is preparing for a seismic shift.
The Prospects of Agentic AI
OpenAI CEO Sam Altman considers “agentic” AI on the horizon, expecting it to cause significant breakthroughs by 2025. As AI integrates more fully into banking, it’s anticipated to refine efficiencies, resulting in a potential increase in pre-tax profits for global banks by 12-17%—an estimated $120-$180 billion boost by 2027.
200,000 Wall Street Jobs May Be Slashed By Artificial Intelligence
It looks like no industry is immune from artificial intelligence, with the financial services sector facing disruption as AI technologies threaten to displace a considerable share of its workforce.
Major Wall… pic.twitter.com/kMWTeEgjNT
— Jack Kelly (@jackjaykelly) January 9, 2025
This AI deployment signifies a transformation that may reshape traditional job roles, moving away from routine tasks and towards more innovation-driven positions. The shift anticipates that while some roles may diminish, new opportunities in data-driven fields will foster business growth.
Wall Street Poised for Huge AI-Driven Cuts for 200,000 Jobs!
Global banks may soon slash up to 200,000 jobs over the next three to five years as artificial intelligence takes over more routine work, according to Bloomberg. Industry analysts believe this shift will reshape… https://t.co/nVArlQon2b
— Kol Tregaskes (@koltregaskes) January 9, 2025
Job Displacement and Transformation
Bloomberg Intelligence’s survey indicates that adopting AI could put 200,000 Wall Street jobs at risk within the next few years. However, AI is expected to transform the workforce rather than eliminate jobs, with routine, repetitive tasks being the most vulnerable. “Any jobs involving routine, repetitive tasks are at risk,” Bloomberg Intelligence’s Tomasz Noetzel highlights.
“Any jobs involving routine, repetitive tasks are at risk” – Bloomberg Intelligence’s Tomasz Noetzel.
The cost of AI implementation remains a concern, yet roles emerging in compliance, governance, and risk intend to offset job cuts in existing roles. As a result, 60% of survey respondents expect a smaller workforce in the coming years.
Opportunities in AI-Driven Fields
The shift to AI-based roles brings burgeoning fields, especially in data science, cybersecurity, and compliance, which are anticipated to witness increased demand. The labor force can adapt and thrive as global banks incrementally employ AI for customer service, financial crime detection, and competitive market positioning.
“Agentic” AI as the “next giant breakthrough” – OpenAI CEO Sam Altman.
The advice to new workforce entrants is to consider AI’s influence seriously as they select their career paths. With AI advancing swiftly, expertise in relevant tech domains will likely become crucial for career longevity and success.