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Artificial intelligence is poised to reshape the banking sector, promising significant cost reductions and improved efficiency, according to a new study by Zopa and Juniper Research. However, this technological leap also brings the risk of widespread job displacement. The report predicts £1.8 billion in cost savings by 2030, a figure matched by anticipated investment in AI technologies. Concurrently, an estimated 27,000 banking jobs are vulnerable.

The primary impact of AI is predicted to be felt in back-office functions, customer support, and portfolio management. Although customer-facing AI applications are prominent, the largest efficiency gains (154 million hours saved by 2030) are anticipated in areas such as back-office operations, regulatory compliance, fraud prevention, and risk assessment. Personalized banking experiences, facilitated by AI-powered virtual assistants and chatbots, represent another major trend. The study emphasizes that while automation will eliminate certain roles, it will also generate demand for new skills in areas such as AI governance, data strategy development, and oversight of automated processes. Emerging challenger banks are setting the pace in AI adoption, compelling established financial institutions to adapt quickly to this rapidly evolving landscape.