The growth of artificial intelligence (AI) is putting more than 200,000 European banking jobs at risk by 2030, new analysis warns. The assessment by Morgan Stanley predicts back- and middle-office roles will be among those most affected by cuts. 

It comes as banks increasingly look to AI to help make savings and close more branches. Hundreds of bank branches have shut in the UK this year, with more than 6,000 closing their doors since 2015 in a blow to high streets across the country. The forecast by Morgan Stanley, a US investment banking and financial services firm, found 10% of the industry’s jobs could be cut by 2030 due to the rise of AI.

The prediction was made following an analysis of 35 lenders. 

The banks in total employ around 2.12 million people, meaning a 10% cut would see about 212,000 job losses, according to the Financial Times which first reported the story.

Morgan Stanley said: “Many banks have quoted efficiency gains coming from AI and further digitalisation to the tune of 30%.”

The analysis found cuts are most likely in the “central services” divisions.

Risk management and compliance roles are also among those deemed most under threat from AI.

The FT reported Morgan Stanley analysts found AI is giving banks an opportunity to improve their cost-to-income ratios. 

Banks are already referencing AI as a factor for restructuring, the outlet added. 

Conor Hillery, JPMorgan Chase’s co-chief executive of Europe, Middle East and Africa, spoke of the need to embrace using AI, while still ensuring staff have the skills needed.

He said: “The one thing we have to be very careful about — in this rush and excitement about AI in our world of banking — is that people don’t lose an understanding of the basics and fundamentals.

“Otherwise, we’re storing up a big problem for the future.”

In 2025, the rise of AI was increasingly cited as a factor in company decisions, both worldwide and across different sectors, to trim their workforces.