Morgan Stanley has warned that artificial intelligence could lead to major job cuts in European banks over the next few years. The report said AI may improve productivity by up to 30 percent, reducing the need for large workforces in banking operations

Investment bank Morgan Stanley has said that artificial intelligence could lead to large-scale job cuts across European banks in the coming years.

According to a research note by the company, AI tools may improve productivity by as much as 30 percent in several banking functions. This could eventually result in job cuts of up to 20 percent over the next five years.

The report highlighted that banks are increasingly using AI to automate routine tasks, reduce costs and improve efficiency.

AI Expected To Change Banking Operations