Advancements in artificial intelligence (AI) and automation are projected to lead to substantial layoffs and job eliminations on Wall Street. Based on a survey conducted by Bloomberg Intelligence, featuring input from Wall Street giants like Citigroup, JP Morgan Chase and Goldman Sachs, middle office and operations are most at risk - any job that involves routine or repetitive tasks is in the crosshairs. Industry analysts forecast that global banks may eliminate up to 200,000 positions over the next three to five years. In June, Citi reported that AI is likely to displace more jobs across the banking industry than in any other sector. About 54% of jobs across banking have a high potential to be automated, Citi said at the time. On Wall Street, chief information and technology officers anticipate an average net workforce reduction of 3% within their organizations. Notably, nearly 25% of the 93 respondents predict a more pronounced decline, estimating workforce reductions between 5% and 10%. Is your career ready for the shift? Read on to find out how to prepare.

The Real Reason Behind the Layoffs: Going Beyond AI

AI is simply the enabler, a tool that allows companies to capture what banks are built on: profit. The Economic Times of India explains it like this, referencing the BI (Bloomberg Intelligence) survey: In 2027, banks could see pretax profits 12% to 17% higher than they would otherwise have been — adding as much as $180 billion to their combined bottom line — as AI powers an increase in productivity. Eight in ten respondents expect generative AI to increase productivity and revenue generation by at least 5% in the next three to five years.

Despite the anticipated job reductions, some industry leaders emphasize that AI will augment rather than replace human roles. Teresa Heitsenrether, overseeing JPMorgan’s AI initiatives, stated that the bank's adoption of generative AI has so far enhanced existing jobs. Similarly, JPMorgan CEO Jamie Dimon has highlighted the potential of AI to improve quality of life, suggesting that while some positions may be eliminated, technology will lead to a transformation in work patterns and job functions. But probably not for the people who are out of work.

Moving Like Meta, with AI on Wall Street

In the technology sector, Meta CEO Mark Zuckerberg has indicated that AI could soon replace mid-level software engineers. In a recent interview, Zuckerberg stated that by 2025, AI could function as a mid-level engineer capable of writing code, potentially automating roles that currently command mid-six-figure salaries. In a wide-ranging interview on the Joe Rogan Experience, Zuckerberg says that the AI replacement strategy might be an expensive endeavor (at the outset) but the long-term potential (read: profit) of replacing these mid-level engineers is too big to pass up.

How to Prepare for the Impact of AI in Your Career

While Jamie Dimon offers a potential upside to the implementation of AI, the challenge becomes personal if your job is affected. And, in the coming years, every industry will be affected by the impact of AI. How can you prepare, and make sure your career is aligned with what companies really want?

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