Report: Most expect AI will not impact bank staffing levels

Most bankers do not expect artificial intelligence will impact staffing levels, according to IntraFi’s first quarter survey of more than 400 executives. .Seventy percent said AI would have minimal impact on staffing levels, while one-quarter expected reductions. Only 13 percent of bankers experienced staffing reductions at their institutions over the past three years. Nearly half said staffing had remained the same, while 39 percent saw increases. Bankers cited cybersecurity and risk fraud as their top concern, at 29 percent. An economic downturn was cited as the top concern for 22 percent of bankers, while 17 percent listed changes in Federal Reserve leadership and monetary policy. The Justice Department recently criminally investigated Federal Reserve Chair Jerome Powell in connection with renovations to Fed buildings, but the probe was dropped earlier this month. The move clears the way for Kevin Warsh to be confirmed to replace Powell. The number of bankers seeing better economic conditions or improved expectations fell for the first time in a year, which IntraFi said shows rising pessimism over the state of the economy. Forty-one percent expect the economy will be unchanged from a year ago, with 37 percent anticipating worse conditions. Other report findings included:Seventy-six percent said their bank’s access to capital was unchanged from a year ago, while 21 percent reported an increase. Three percent reported a decrease. Seventy-four percent expect access to capital to remain unchanged over the next year. Forty-three percent said loan demand increased from 12 months ago, with 27 percent citing a decrease. Forty-seven percent expect loan demand will be higher a year from now, while 41 percent predicted no change. Two-thirds said funding costs had increased from a year ago, while 14 percent reported a decrease. Half expected no change 12 months from now. Half said deposit competition is unchanged from a year ago, while 49 percent expect no changes in the next year. Forty-seven percent predicted a decrease in competition.