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Job Cuts Driven By AI Are Rising On Wall Street

1 week 2 days ago
Firms like Bank of America, Citi, Wells Fargo, and others are reporting strong profits while reducing head count and automating more work. "All of them credited A.I. to some degree ... in areas ranging from the so-called back office, where tens of thousands of employees fill out paperwork to comply with various laws and regulations, to the front office, where seven-figure salaried professionals put together complicated financial transactions for corporate clients," reports the New York Times. From the report: Less than four months ago, Bank of America's chief executive, Brian T. Moynihan, volunteered in a TV interview what he would say to his 210,000 employees about the chance of artificial intelligence replacing human work. "You don't have to worry," he said. "It's not a threat to their jobs." Last week, after Bank of America reported $8.6 billion in profit for the first quarter -- $1.6 billion more than the same period a year earlier -- Mr. Moynihan struck a different tone. The bank's bottom line, he said, was helped by shedding 1,000 jobs through attrition by "eliminating work and applying technology," which he repeatedly specified was artificial intelligence. He predicted more of that in the months and years to come. "A.I. gives us places to go we haven't gone," Mr. Moynihan said. The veneer of Wall Street's longstanding assertion -- that A.I. will enhance human work, not replace it -- is rapidly peeling away, as evidenced by the current quarterly earnings season. JPMorgan Chase, Citi, Bank of America, Goldman Sachs, Morgan Stanley and Wells Fargo racked up $47 billion in collective profits, up 18 percent, while shedding 15,000 employees. All of them credited A.I. to some degree with helping cut jobs and automate work in areas ranging from the so-called back office, where tens of thousands of employees fill out paperwork to comply with various laws and regulations, to the front office, where seven-figure salaried professionals put together complicated financial transactions for corporate clients. Unlike executives in Silicon Valley, few major financial figures are stating outright that A.I. is eliminating jobs. Citi, for example, has pledged to shrink its work force by 20,000 people through what one executive described to financial analysts last week as the company's "productivity and efficiency journey." The bank is paying for A.I. software from Anthropic, Google, Microsoft and OpenAI, to automatically read legal documents, approve account openings, send invoices for trades and organize sensitive customer data, among other tasks, according to public statements by bank executives and two people familiar with Citi's systems. Among the recent job cuts at Citi were scores of employees who were part of the bank's "A.I. Champions and Accelerators" program, according to the two people, who were not permitted by the bank to speak publicly. The program involves Citi employees who perform their day jobs while also working to persuade their colleagues to adopt A.I. technologies.

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Meta To Start Capturing Employee Mouse Movements, Keystrokes For AI Training Data

1 week 2 days ago
Reuters reports that Meta plans to start collecting U.S.-based employees' mouse movements, clicks, keystrokes, and occasional screen snapshots to train AI agents that can better learn how humans use computers. The tool, called Model Capability Initiative (MCI), will reportedly "not be used for performance assessments or any other purpose besides model training and that safeguards were in place to protect 'sensitive content.'" From the report: Meta CTO Andrew Bosworth told employees in a separate memo shared on Monday that the company would step up internal data collection as part of those "AI for Work" efforts, now re-branded as Agent Transformation Accelerator (ATA). "The vision we are building towards is one where our agents primarily do the work and our role is to direct, review and help them improve," Bosworth said. The aim, he added, was for agents to "automatically see where we felt the need to intervene so they can be better next time." Bosworth did not explicitly spell out how those agents would be trained, but said Meta would be "rigorous" about "building up data and evals for all the types of interactions we have as we go about our work." Meta spokesperson Andy Stone acknowledged that the MCI data would be among the inputs. [...] "If we're building agents to help people complete everyday tasks using computers, our models need real examples of how people "actually use them -- things like mouse movements, clicking buttons, and navigating dropdown menus," said Stone.

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