AI in Banking: What It Means for Jobs & Commercial Real Estate

The growing role of AI in banking is expected to significantly influence how financial institutions operate, particularly as it relates to employment and workplace strategy.

While the use of artificial intelligence in banking is often associated with automation, its broader impact is more complex. AI is contributing to both the reduction of certain roles and the creation of new ones, resulting in a shift in the types of jobs that support the industry.

A Shift in Job Functions

The impact of artificial intelligence in banking is most evident in roles that involve routine, repetitive tasks. Functions such as back-office processing, compliance reporting, and basic underwriting are increasingly being automated.

At the same time, as AI use cases in banking continue to expand, demand is growing for roles that support and manage these technologies. These include:

• Data science and analytics
• AI model development and governance
• Cybersecurity and risk management
• Product and digital strategy

In addition, many existing roles are evolving. Relationship managers, for example, are increasingly supported by AI-driven insights, while new responsibilities are emerging around oversight and implementation of AI systems.

Variation Across Institutions

The AI impact on banking jobs will vary depending on the size and digital maturity of each institution.

Larger banks that have made significant investments in technology may be better positioned to integrate AI into their operations and redeploy employees into new functions. In these cases, workforce changes may be more gradual and focused on realignment rather than reduction.

Smaller or less digitally advanced institutions may adopt AI at a slower pace. However, they may also face increased competitive pressure as the use of AI in banking and finance becomes more widespread.


What the Experts are Predicting

A widely cited Bloomberg Intelligence forecast indicates that global banks may eliminate up to 200,000 jobs in the next three to five years due to AI-driven automation. This accounts for approximately a 3 percent reduction in the total workforce.

Citigroup estimates that around 54 percent of jobs in the banking sector could be automated, leading to potential job loss as well as the transformation or augmentation of existing positions.

Research from Gartner predicts that 52 percent of entry-level banking positions will be  impacted by generative AI, whereas only 3 percent of senior management roles will be affected. This research indicates that the skills required for traditionally entry-level jobs have evolved, highlighting the potential of AI to transform the nature of work.
  

Implications for Real Estate Strategy

Changes in employment structure have direct implications for how banks approach their real estate portfolios.

As job functions evolve, traditional office models centered around large concentrations of back-office roles may become less relevant.

In their place, banks are increasingly prioritizing space that supports:

• Collaboration and team-based work
• Specialized, high-skill roles
• Technology integration
• Client-facing functions

This shift is contributing to a broader trend towards more efficient and flexible portfolios, often characterized by fewer, more strategically located offices.

Looking Ahead

The continued expansion of AI in banking is expected to further influence both employment and real estate strategy.

As institutions adapt to these changes, the ability to align workforce planning with real estate decisions will become increasingly important. Occupiers that are able to adjust to shifting job functions and evolving space requirements will be better positioned to navigate the long-term impact of AI.

As detailed in Cresa’s Banking Report, AI is only one of several factors influencing how banks are rethinking their real estate strategies. When considered alongside shifts in workplace expectations and portfolio decision-making, it becomes clear that space is being evaluated through a more strategic and integrated lens.