Zopa and Juniper Research Forecast AI's Impact on UK Banking

Digital bank Zopa and Juniper Research have released a report forecasting significant changes in the UK banking sector due to generative AI. The study projects that UK banks will invest over £1.8 billion in generative AI by 2030, with anticipated savings of 187 million labor hours primarily from back-office and administrative tasks.

The report highlights that AI is expected to automate complex functions such as regulatory compliance, fraud detection, and risk management, potentially saving £923 million annually by the end of the decade. This automation could place approximately 27,000 finance jobs at risk, particularly in customer service and back-office roles.

Despite the potential job displacement, the report suggests a shift towards reskilling the workforce for roles in AI governance and data strategy. Zopa has launched a five-year campaign to reskill 100,000 banking workers in AI disciplines by 2030, aiming to equip the industry with the necessary skills to manage this technological transition.

The study underscores the importance of AI in enhancing productivity and personalizing customer experiences, with UK banks expected to invest £1.1 billion in customer-facing AI by 2030. This investment aims to develop advanced virtual assistants and chatbots, improving operational efficiency and freeing up human agents for more complex interactions.