Major banks are adding artificial intelligence-Despite industry-wide cuts, the speed of focused work is accelerating.
AI talent hiring at 50 of the world's largest banks has increased by 9% over the past six months, according to new data released Thursday by AI implementation research firm Evident. This is double the overall headcount growth rate for these banks over the same period.
“AI is seen as a key strategic priority, which is why the number of banks' AI talent continues to grow rapidly, outweighing the impact of continued workforce reduction efforts seen across the broader sector. It doesn’t seem to be going well,” said Alexandra Mousavizadeh, co-founder and CEO of Evident. said in a statement.
JP Morgan Chase, Capital One, and Wells Fargo lead the race, adding the most AI talent. JPMorgan has the most AI talent, with nearly six times as many AI staff as the average bank included in Evident's AI Index. He employs 11.5% of the total existing AI talent within the banking industry.
The nation's largest bank by assets was an early adopter of AI, hiring its first head of AI research in 2018. JP Morgan topped both banks in Evident. AI index This report ranks how the world's 50 largest banks are implementing and evolving AI using four metrics: talent, innovation, leadership, and transparency.
Capital One, which maintains its No. 2 spot on the index, has the highest density of AI talent, with 12% of its workforce working on AI. This is more than four times the average bank in Evident's index.
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and Headcount reductions at multiple major banks – include citygroupBarclays, Deutsche Bank and Lloyds Bank have already seen an increase in the number of AI-focused positions this year, demonstrating the importance that financial institutions place on building capacity in this area. Masu.
Despite both companies implementing job cuts earlier this year, Germany increased its global AI talent capacity by 26.7% (almost three times the index average) and Lloyds grew its data engineering capacity twice as fast as its UK peer. It has been revealed that the force has been expanded.
However, the banking sector will face fierce competition for AI talent. Already in short supply. It is reportedly being offered by technology industry leaders such as OpenAI and Meta. Multi-million dollar compensation package To attract talented people.Even the Biden administration has said it plans to do so. Hire over 100 AI experts By summer, and it will be Require all federal agencies Appoint a chief AI officer.
During the first quarter earnings season, Several bank leaders touted the results. The potential of AI within your organization. Over the years, several large banks have been building AI capabilities and services, and are enhancing this effort with new customer-facing tools such as generative AI-powered chatbots and virtual assistants.
Mousavizadeh said that as competition accelerates, companies that started early and invested significant resources over the past few years will only continue to outperform their rivals.
“Currently, the top 10 banks in AI talent represent 51% of the banking industry's overall talent pool, giving them a significant advantage when it comes to AI adoption,” he said. “This concentration of AI talent has real implications. If laggard banks are unable to close the gap, the race to adopt AI will be an uphill battle.”
The types of roles being hired also represent a notable shift from the planning and development stage of AI integration to implementation. Over the past six months, 68% of net new AI talent at U.S. banks was focused on how to get started using the technology in practice.
Overall, staffing in implementation roles increased by almost 14% from November 2023 to April 2024, followed by data engineering, AI development, and model risk.