1、RETHINKING WORKFORCE RISK IN FINANCIAL SERVICES:Whats the Real Impact of AI?2|WHATS THE REAL IMPACT OF AI?Table of ContentsIntroductionWhy Financial Services Workforce Risk Is Lowand Why That Deserves a Second Look The Real Risk:Shrinking Institutional Knowledge in Critical RolesThe Skills Landscape

2、The Promiseand Overpromiseof AILayoffs Offer Short-Term ReliefBut at What Long-Term Costs?Lessons from 2008 and 2018The Next Step for Financial Organizations C O P YR I G H T 2 0 2 5 LIGHTCAST34 69111314163The financial services industry is no stranger to workforce volatility.But while some themes r

3、hyme with 2008 and 2018,2025 is not a repeat.Among rapid AI development,a globalized regulatory environment,and financial market uncertainty,financial organizations risk assuming this landscape can be managed the same as cycles of the past:the labor supply will always be readily available and techno

4、logy will absorb workforce costs.However,theres another story lurking beneath the surface.The workers most skilled in regulatory compliance,operations,and client services are retiring at rates never seen beforeand taking critical institutional knowledge with them.Additionally,Baby Boomers hold 51%of

5、 all wealth in the US,valued at$78.09 trillion,causing a large influx of demand for financial services as they leave the workforce.These retirement dynamics converge with a shrinking prime-age workforce(ages 25 to 54);yet major Wall Street banks are projecting to slash up to 200,000 jobs over the ne

6、xt three to five years due to AI,largely in entry-level positions.As AI displaces these younger workers and skills gaps increase in mission-critical roles,this prompts the question:who will be left to do the work that AI cant do?|WHATS THE REAL IMPACT OF AI?4Why Financial Services Workforce Risk Is