Banking is being reshaped by artificial intelligence, with major cost savings projected but significant job losses expected. A new Zopa–Juniper study estimates that AI could save £1.8 billion by 2030, but with 27,000 jobs—mostly in customer service and back-office roles—at risk.

The bulk of time savings—154 million hours annually, representing 82%—will come from automating compliance, fraud detection, and risk management. This is forecast to cut costs by £923 million each year and improve accuracy under new fraud liability regulations.

Banks are also investing over £1.1 billion in customer-facing AI such as chatbots and digital assistants. These tools could save £540 million annually, freeing up 26 million hours of staff time, while portfolio management AI enhances analysis and reporting without replacing human advisors.

Workforce disruption is inevitable, with 14,000 customer service and 10,000 back-office roles identified as most at risk. The report stresses, however, that reskilling opportunities exist in AI governance, data strategy, and oversight functions. Zopa CTO Peter Donlon described this shift as “a once-in-a-generation chance to reimagine the workforce.”

Digital challengers like Zopa, already built on AI foundations, are positioned to thrive, while traditional banks face pressure to modernise. Juniper’s Nick Maynard cautioned that generative AI is a tipping point: unprepared institutions face risks, but those that adapt could redefine banking around efficiency, personalisation, and automation.