Banking Giant Lloyds Warns of Jobs Cuts as AI Revolution Takes Hold.
Lloyds Banking Group CEO Charlie Nunn has issued a stark warning that bankers will need to "reskill themselves" in order to survive the growing use of artificial intelligence (AI) in the financial services sector. The impact of AI on banking is expected to be significant, with some 200,000 European bank jobs potentially at risk by 2030 according to forecasts from Morgan Stanley.
However, Nunn has downplayed these predictions, stating that Lloyds will not be following suit and instead choosing to invest in new skills and roles. "The reality is we don't quite know how to play out in the medium term, and I think that's where you see the larger numbers being forecast," he explained.
Nunn acknowledged that some jobs would need to be reduced in certain areas as a result of AI adoption, but stressed that Lloyds would do its best to support affected colleagues. Instead, the bank is planning to create new roles with skills in line with the growing use of AI.
In fact, Nunn revealed that generative AI had already provided a £50m boost to Lloyds' balance sheet last year, following the implementation of AI-powered systems for processing customer complaints. The bank expects this financial benefit to double by 2026 as it continues to adopt more advanced AI models, including agentic AI.
Agentic AI is a type of AI that can proactively plan and execute tasks with minimal human oversight. This technology is expected to revolutionize the way customers experience financial services, and Lloyds is investing heavily in its development and implementation.
As part of this shift, some experts have suggested that a universal basic income could be introduced to protect workers who are displaced by AI adoption. While not currently part of official government policy, this idea has gained traction among policymakers and industry leaders.
Nunn himself noted the importance of embracing technological change, drawing on his own experience in the financial services sector over 34 years. "We've seen radical efficiency improvements, and reallocation of talent and skills, through financial services," he said.
Lloyds Banking Group CEO Charlie Nunn has issued a stark warning that bankers will need to "reskill themselves" in order to survive the growing use of artificial intelligence (AI) in the financial services sector. The impact of AI on banking is expected to be significant, with some 200,000 European bank jobs potentially at risk by 2030 according to forecasts from Morgan Stanley.
However, Nunn has downplayed these predictions, stating that Lloyds will not be following suit and instead choosing to invest in new skills and roles. "The reality is we don't quite know how to play out in the medium term, and I think that's where you see the larger numbers being forecast," he explained.
Nunn acknowledged that some jobs would need to be reduced in certain areas as a result of AI adoption, but stressed that Lloyds would do its best to support affected colleagues. Instead, the bank is planning to create new roles with skills in line with the growing use of AI.
In fact, Nunn revealed that generative AI had already provided a £50m boost to Lloyds' balance sheet last year, following the implementation of AI-powered systems for processing customer complaints. The bank expects this financial benefit to double by 2026 as it continues to adopt more advanced AI models, including agentic AI.
Agentic AI is a type of AI that can proactively plan and execute tasks with minimal human oversight. This technology is expected to revolutionize the way customers experience financial services, and Lloyds is investing heavily in its development and implementation.
As part of this shift, some experts have suggested that a universal basic income could be introduced to protect workers who are displaced by AI adoption. While not currently part of official government policy, this idea has gained traction among policymakers and industry leaders.
Nunn himself noted the importance of embracing technological change, drawing on his own experience in the financial services sector over 34 years. "We've seen radical efficiency improvements, and reallocation of talent and skills, through financial services," he said.
, but hey, who needs human bankers when you have algorithms that can handle customer complaints? Lloyds is investing in new roles, yaaas, because we all know how much love we have for 9-to-5 jobs 
. But seriously, £50m boost from generative AI is no joke, I guess that's a decent way to start the decade 
.
I don't know if I'm pro or anti AI jobs though, maybe we need some sort of universal basic income to help people adapt? 
but i mean nunn is right we dont know how ai is gonna play out in the future maybe these forecasts are way off? idk about the idea of universal basic income tho - isnt that like a handout or somethin 
. But on the other hand, AI has already brought them some sweet £50m 
. And I agree with Nunn, embracing change is key 
. We just need to reskill ourselves and move forward 
! Universal basic income might be a thing in the future, that'd be interesting