European Banks Face 10% Workforce Reduction from AI by 2030, Morgan Stanley Predicts
Morgan Stanley forecasts that AI-driven automation could eliminate roughly 212,000 jobs across Europe's banking sector by 2030, targeting back-office, compliance, and risk management roles. The analysis covers 35 banks employing 2.12 million workers, with lenders expecting up to 30% efficiency gains from AI adoption.
Dutch bank ABN Amro has already announced a 20% workforce reduction by 2028, while Société Générale's CEO warned of sweeping changes to tackle high operational costs. Retail-focused banks in France and Germany face particular pressure as digital channels replace physical branches.
The trend extends beyond finance, with AI displacing repetitive tasks across industries. Morgan Stanley highlights improved cost-to-income ratios as a key incentive for banks—a metric closely watched by investors.
