The rise of Artificial Intelligence (AI) is sparking concerns across various industries especially in banking. A leading bank executive has openly acknowledged the potential risks posed by AI to employment in this sector. Market experts predict that AI-driven automation could result in significant job losses in the banking industry.

Why Are These Concerns Rising.?

Deutsche Bank’s Chief Technology Data & Innovation Officer Bernd Leukert has highlighted this issue. Speaking at the ‘Bank on Tech’ event in Bengaluru he stated that AI and Generative AI (GenAI) could transform 30-40% of banking jobs. Many employees may face job displacement due to this shift.

AI and Banking, Growing Worries

During the event Leukert emphasised India’s role in Deutsche Bank’s tech supply chain. He said, “Post-COVID, we decided to focus on talent hubs and India is a major one. Over the last decade we have hired 8,500 tech professionals here.”

Despite AI’s potential it also presents significant challenges. Leukert acknowledged that AI’s outcomes are not always predictable making regulatory oversight crucial. He noted that while AI adoption is essential for the banking industry it requires strict regulations for auditing and monitoring.

Is Technology Replacing Humans.?

In an interview with ‘The Hindu’ Deutsche Bank’s Global CIO (Corporate Functions) and CEO of Deutsche India, Dilip Kumar Khandelwal, stated that technologies like cloud computing, AI and GenAI are reshaping banking operations. He explained “Earlier, we needed more staff to expand revenue and customer base. Now with AI-driven investments, we can achieve growth without increasing workforce numbers.”

How AI Could Impact Jobs.?

According to the Economic Survey 2023 - 24, AI’s impact on employment varies by industry

1. Minimal Impact on Manufacturing: AI is unlikely to replace human workers in manufacturing since robotic labour lacks the flexibility and cost-efficiency of human employees. Factories will still require a human workforce.

2. AI Will Assist Inventory & Supply Chain Management: Rather than replacing jobs, AI will complement human efforts by optimising processes through data analysis. However human supervision will remain essential.

Read More: Indian Government to Impose Strict Regulations on OTT Platforms – New Guidelines Issued.

3. Major Threat to the BPO Industry: The Business Process Outsourcing (BPO) sector faces the highest risk as AI-driven tools like chatbots can handle routine tasks efficiently. This could lead to massive job reductions in the next decade.

4. AI’s Positive Impact on Healthcare, Weather Forecasting & Education: These industries will benefit from AI-powered advancements, improving efficiency and accuracy.

5. AI’s Role in the Service Sector: Automation in customer service, data analysis and other routine jobs could lead to permanent job eliminations. AI may significantly reduce the need for human employees in these roles.

Final Thoughts

While AI is revolutionising industries it also raises concerns about job security particularly in banking and BPO sectors. Experts believe that rather than completely replacing humans AI should be integrated as a tool to enhance efficiency while maintaining necessary human oversight.