New York, January 14: AI will reportedly lead to massive job losses on Wall Street amid its dominance in various sectors. The Wall Street layoffs are expected to affect over 2,00,000 people. Wall Street is the US financial market, which is the place of the world's largest stock exchanges. Located in New York City, Wall Street is the Financial District of Lower Manhattan, consisting of the largest firms and stock exchanges.

According to a report by Fortune, global banks will lay off as many as 2,00,000 employees in the next three to five years as artificial intelligence takes over the tasks of human workers on Wall Street. AI is already feared by many as a force that will take jobs like writing, coding, entertainment, teaching, and finance, among various other sectors. Meta Layoffs Coming in 2025: Mark Zuckerberg’s Company To Cut Mid-Level Engineers Roles To Save Millions To Continue Coding, Automation With AI, Says Report.

The report said that a survey by chief information and technology officers for BI (Business Insider) indicated that, on average, around 3% of their workforce would be cut in the coming times. The Wall Street layoffs will likely risk job roles, including back-office, middle-office, and operations, as per BI senior analyst Tomasz Noetzel. 

The report also highlighted that the job cuts would impact customer service roles, as they would likely be replaced by  AI bots helping customers. Noetzel said that any job that involves routine and repetitive tasks would be at major risk. He added that artificial intelligence would not eliminate these roles fully but lead to a transformation in the workforce. 

In the survey, around a quarter of 93% of respondents predicted that the layoffs would impact 5% to 10% of the total headcount. Business Insider reportedly surveyed the largest financial players in the market, including Goldman Sachs Group, JPMorgan Chase, Citigroup, and others. Microsoft Layoffs: No Plans To Lay Off Employees in India, Says Company’s South Asia Head Amid Reports of Job Cuts Across Departments Globally.

The findings said that banks could see 12% to 17% pretext profits as AI power increases productivity. Eight respondents expected that generative AI would increase productivity and revenue generation by at least 5% in the upcoming three to five years.

(The above story first appeared on LatestLY on Jan 14, 2025 02:44 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).