AI Is Coming for European Bank Jobs With Italy Taking a Hit.

European banks, including BPER Banca SpA in Italy, are starting to use artificial intelligence (AI) tools to cut staff and improve efficiency. BPER Banca plans to reduce its workforce by about 2,000 employees, or 10%, by 2027 through AI-enabled process optimization and automation. Other European banks, such as UBS, Deutsche Bank, and ING, are also using AI for various purposes, including analyzing potential M&A deals and screening for potential defaulters. While AI is expected to lower costs and increase profitability in the banking industry, few banks have provided concrete numbers on expected savings. However, BPER Banca's announcement marks one of the first instances of a bank quantifying the impact of AI on its workforce. The adoption of AI also presents a hiring challenge as banks need to acquire the necessary skillset for AI deployment. BPER Banca plans to partially offset its workforce reduction by hiring 1,100 employees in strategic areas, including IT. [Extracted from the article]