According to new research from Juniper Research and Zopa Bank, this technological push is expected to generate major productivity gains, saving the industry an estimated 178 million work hours over the next five years. The bulk of these efficiencies will be found in back-office and administrative functions, which will account for approximately 82% of the work hour reductions and half of all cost savings, City AM reports.

Britain’s leading banks, including HSBC, Natwest, Barclays, and Lloyds, have already intensified their AI development in a growing tech arms race. Last year, Lloyds established an ‘AI Centre for Excellence’, whilst Natwest partnered with OpenAI to enhance operational simplicity.

In response to the impending shift, digital bank Zopa has launched “Jobs 2030”, a five-year campaign aiming to reskill 100,000 banking workers in AI disciplines. The initiative will include industry-specific training, a Gen AI Engineering Programme, and a coding academy. Clare Gambardella, Zopa’s chief customer officer, stated that whilst the integration of AI is inevitable, the campaign aims to “put employees on the front foot”.

The move comes as the wider labour market feels the impact of AI. Research has shown that vacancies for graduate and junior positions have fallen by over 30% since late 2022, reaching their lowest point since the pandemic.