AI Will Demolish 200,000 Jobs According to Expert

By Douglas A. McIntyre Published Dec 31, 9:15AM EST

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Morgan Stanley forecasts that artificial intelligence will eliminate 200,000 banking jobs in the EU by 2030.
Other forecasts are even worse, but experts also believe that AI will create new employment opportunities.

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AI Will Demolish 200,000 Jobs According to Expert — © monsitj / iStock via Getty Images

Morgan Stanley believes that artificial intelligence (AI) will kill 200,000 jobs in Europe by 2030. The figure is staggering because it only includes one group of people in a single industry in a single region. It also demonstrates how AI may be an extraordinary trigger for worldwide unemployment.

The Financial Times reports that the Morgan Stanley forecast is only for banking jobs in the European Union. It reports, “Cuts are most likely to come from within banks’ ‘central services’ divisions, which include back- and middle-office roles, as well as risk management and compliance positions, according to the analysis of 35 lenders.” If this holds true for other regions of the world that are home to the same kind of businesses, the figure has to range nearer to 1 million.

The forecast is not entirely new. Goldman Sachs told its employees to expect job cuts next year. However, the magnitude of these cuts is nowhere near the new Morgan Stanley forecast.

JPMorgan Chase CEO Jamie Dimon said AI would take a large number of jobs, but not just at his company. He believes jobs in a much larger part of the economy will be lost while others are added. Additionally, people may enjoy a shorter work week, he says.

No forecast about AI job loss is as terrible as one given by Goldman Sachs. It expects 300 million jobs worldwide will be “lost or diminished” because of AI efficiency. On the other hand, it expects AI to create new employment opportunities.

The debate about AI-driven job losses will not be conclusive until substantial cuts begin.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.