Tech Explained: Here’s a simplified explanation of the latest technology update around Tech Explained: AI Threatens 200 Thousand Banking Jobs in Europe by 2030 in Simple Termsand what it means for users..
JAKARTA – The use of artificial intelligence or artificial intelligence (AI) in the European banking sector is expected to have a major impact on the workforce. A report by the Financial Times states that around 200,000 jobs in the European banking sector are at risk of being lost by 2030 due to increased AI-based automation.
This transformation continues the major changes in the banking industry. If previously customers had to come to the branch office and interact directly with the teller, the emergence of ATMs has reduced this need. Now, digital banking and AI are driving even more drastic changes.
Morgan Stanley’s analysis estimates that more than 200,000 banking jobs in the EU could be lost in the next five years. This number is equivalent to about 10 percent of the total workforce at the 35 largest banks in the European region. Increased adoption of technology is considered a key factor behind this potential cut.
A number of positions are predicted to be the most affected, especially in the back office operations sector, risk management, and compliance. This phenomenon is not only happening in Europe. Previously, Goldman Sachs had also warned its employees in the United States of the possibility of layoffs and hiring freezes until the end of 2025.
Banks are increasingly relying on technology to reduce operating costs. The presence of digital banks, for example, has reduced the need for physical offices, tellers, office managers, security officers, to rent and utility costs. With AI, this efficiency can potentially be improved even further.
One of the main reasons banks are turning to AI is labor efficiency. Unlike humans, AI systems can operate 24 hours a day, without requiring breaks or vacations. AI is also able to process large amounts of data very quickly, from financial reports to credit applications, which previously took hours or even days if done manually.
Despite offering many advantages, the use of AI also carries risks. In 2025, Deloitte Australia came under the spotlight after using AI to compile a report for the Department of Employment and Workplace Relations (DEWR). The problem arose when the report was known to cost around 440,000 Australian dollars and was filled with serious errors.
The report is known to contain three academic references that never existed, as well as false quotes claimed to come from federal court rulings. This case is a real example that excessive reliance on AI can lead to fatal errors.
This condition shows that although AI is able to increase the speed and scale of work, this technology is still far from perfect. Without adequate human supervision, AI-based automation has the potential to cause greater losses, both financially and reputationally.
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