AI is driving transformation in the banking industry, bringing both opportunities and challenges. A new Zopa–Juniper report projects £1.8 billion in cost savings by 2030, though with 27,000 jobs—mainly in customer service and back offices—at risk.

Most of the efficiencies will be realised behind the scenes, where automation of compliance, fraud detection, and risk management will save 154 million staff hours each year, or 82% of the total, cutting costs by £923 million. AI is also considered vital to reducing human error and meeting new fraud reimbursement regulations.

Customer-facing investment will exceed £1.1 billion, with advanced chatbots and AI assistants providing hyper-personalised experiences. These could save £540 million and reclaim 26 million hours of staff time annually, while portfolio management AI enhances analysis and reporting without replacing advisors.

The report warns of steep job losses, with 14,000 customer service and 10,000 back-office roles most vulnerable. Yet it highlights opportunities for reskilling workers in AI governance and oversight. Zopa CTO Peter Donlon described the shift as “a once-in-a-generation chance to reimagine the workforce.”

The gap between digital-first and legacy banks is widening. While AI-native institutions like Zopa are well positioned, traditional banks face urgent pressure to modernise. Juniper’s Nick Maynard said generative AI marks a tipping point, presenting both risks and opportunities for the sector.