AI Could Help Eliminate 200K EU Banking Jobs By 2030

Thousands of European banking sector workers could face AI-related job losses by 2030.

Artificial intelligence (AI) and branch closures will drive this trend over the next five years and lead to a 10% workforce reduction across the industry, the Financial Times (FT) reported Wednesday (Dec. 31), citing a forecast from Morgan Stanley.

The report adds that the cuts are happening as banks are scrambling to realize savings from AI while also shifting more operations to the digital realm. Most cuts will likely come from back-office and middle-office roles, the FT added, along with risk management and compliance positions. Morgan Stanley based its analysis on a study of 35 banks employing approximately 2.1 million staffers.

“Many banks have quoted efficiency gains coming from AI and further digitalisation to the tune of 30 per cent,” Morgan Stanley said.

The report notes that banks have already begun to point to AI as a factor in restructuring their staffing levels. For example, Dutch lender ABN Amro said in November it would cut about 20% of its full-time staff by 2028, while Société Générale CEO Slawomir Krupa warned in March that “nothing is sacred” in his campaign to reduce the French banks costs.

“We can already see industry changes in audit, law and consulting, but banks aren’t delivering improved efficiency yet,” said Jason Napier, head of European banks research at UBS. “Cost bases are large … and these new powerful tools are yet to be fully implemented.”

“Those who still need convincing that AI will significantly change financial services should spend more time exploring the tools which are already available,” he added.

Research by PYMNTS Intelligence has found that 54% of workers who were employed, seeking work or studying when surveyed believed that generative artificial intelligence posed a “significant risk of widespread job displacement.”

This concern was more pronounced among people familiar with generative AI platforms at 57% versus those unfamiliar at 41%.

“Despite broad concern about general displacement, 38% of workers feared that generative AI could eventually lead to the elimination of their specific jobs,” PYMNTS wrote in May. “This personal job fear was higher among those using generative AI at least weekly (50%) compared to unfamiliar users (24%).”

Additional PYMNTS Intelligence examined how AI in banking is entering its “next era,” where conversational interfaces shift from simple Q&A bots to tools that can offer strategic insight and contextual counsel.

Crucially, PYMNTS reports that nearly three-quarters of bank customers want greater personalization and that embedded conversational AI could win back 72% of bank customers by offering that tailored experience.

“Thus, cognitive banking is not just about automation — it’s about personal relevance, timing and trust,” PYMNTS wrote earlier this year.