The business value of artificial intelligence (AI) in banking is projected to reach $300 billion by 2030, but around 500,000 UK bank workers’ jobs could be at risk by that time.

IHS Markit analysis estimated AI in banking business last year at $41.1 billion, which includes the cost savings and efficiencies of introducing AI, compared to keeping existing infrastructures and processes.

However, the introduction of AI technology is not entirely good news for the banking industry, with job losses and re-assignments expected as AI increases enterprise productivity.

The business information provider’s estimated that by 2030, 1.3 million jobs in the United States and half a million in the UK, could be affected. If this is mirrored across all countries globally, then there will be tens of millions of banking and financial services jobs impacted by the introduction of AI technology in the coming decade.

“Banking employees potentially impacted by the introduction of AI includes tellers, customer service reps, loan interviewers and clerks, financial managers, compliance officers and loan officers,” said Don Tait, principal analyst at IHS Markit. “All in all, AI technology will reconfigure the financial industry’s structure, making the banking sector more humane and intelligent.”

North America is projected to be the largest market for AI in banking between 2018 and 2023, increasing from a business value of $14.7 billion in 2018 to nearly $79 billion by 2030. However, the proportional importance of the North American region is likely to decline between 2024 and 2030 as Asia Pacific, Europe and other global regions roll out more AI solutions in the banking sector.

Asia Pacific is the second largest region employing AI in banking, increasing from a business value of $11.5 billion in 2018 and rising to become the leading region in 2024, with a business value of $50.6 billion. By 2030, the Asia Pacific region for AI in banking is projected to reach $98.6 billion by 2030.

“The innovative capabilities AI will bring to financial services will be transformative,” commented Tait. “This sea change will require both businesses and governments to develop expansive foresight and critical understanding of the full effects of digitization and emerging technologies.”

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