The financial services sector is facing disruption as AI technologies threaten to displace a considerable share of its workforce.

A hot December jobs report has many strategists confident the Federal Reserve will hold off on further interest rate cuts for now. And some on Wall Street think this report may have even cracked the door open for the Fed to consider rate hikes in 2025.

It wasn’t supposed to be this way. With the economy booming, a friendly Federal Reserve at its back and Donald Trump headed to the White House, Wall Street saw nothing but upside as the calendar turned.

Global banks are expected to cut as many as 200,000 jobs in the next three to five years as artificial intelligence (AI) encroaches on tasks currently carried out by human workers, according to Bloomberg Intelligence.

A new report shows that company executives plan to cut 3% of their workforce in the next three to five years because of AI.

But AI will not eliminate them fully, rather it will lead to workforce transformation.” Nearly a quarter of the 93 respondents predict a steeper decline of between 5% and 10% of total headcount. The peer group covered by BI includes Citigroup,

The rise of artificial intelligence is anticipated to eliminate 200,000 jobs at Wall Street banks in the coming years, particularly in back office positions.

Artificial intelligence is coming for the banks, and it’s not stopping at the doors. Over the next three to five years, up to 200,000 jobs in the banking sector could disappear as AI systems take over tasks currently done by humans,