European banks are increasingly deploying artificial intelligence (AI) tools to cut staff costs, with Italian lender BPER Banca SpA leading the way. BPER announced plans to reduce its workforce by about 2,000 employees over the coming years, leveraging AI and generative AI-enabled process optimisation and automation. This reduction, representing a 10 per cent cut, will bring the bank's headcount to approximately 18,500 by 2027. BPER joins other major banks like Citigroup Inc., UBS Group AG, and CaixaBank SA in utilising AI to enhance efficiency and reduce costs. Citigroup predicts that AI will displace more jobs in banking than any other sector, potentially boosting global profitability by $170 billion in the next few years. UBS has developed an AI tool for analysing M&A deals, while CaixaBank plans to make AI a core part of its new strategy. JPMorgan Chase & Co. is also investing in AI talent, with CEO Jamie Dimon suggesting that AI could reduce the workweek to 3.5 days. Deutsche Bank AG and ING Groep NV are using AI for portfolio scanning and default risk screening, respectively. BPER's staff reduction will occur through voluntary exits and natural turnover, with additional measures like shifting sales to digital channels. The bank plans to hire 1,100 new employees in strategic areas, including IT, to support its digital transformation. Attribution: Bloomberg Subediting: M. S. Salama
