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NatWest chief executive has dismissed a direct link between AI and job losses, saying the technology can boost productivity.
Paul Thwaite told MPs on Tuesday that artificial intelligence can "improve the productivity of the economy" and that NatWest is utilising AI across its operations. He stated that he sees no "direct link" between AI and job cuts at the bank.
Rather than replacing roles, Thwaite explained that NatWest is using generative AI to enhance employee efficiency, specifically citing software engineers and relationship managers as examples.
This perspective contrasts with recent trends in the tech sector, where numerous companies have announced job cuts potentially linked to the rise of AI. Microsoft, for instance, announced layoffs of approximately 6,000 employees in May while simultaneously investing heavily in AI and integrating it into roles like software development.
A World Economic Forum survey earlier this year indicated that 41 per cent of employers plan to reduce their workforce due to task automation facilitated by technology.
However, Thwaite's comments suggest that NatWest is taking a different approach, focusing on AI's potential to augment human capabilities rather than eliminate jobs.
Mr Thwaite, who employs more than 60,000 people at NatWest, said: “We don’t see a direct link between deploying technology and removal of jobs.
“What I would say is the profile of the workforce is changing a lot.
“We’re now recruiting people who are specialists in AI, data scientists, digital experts, that’s obviously a different profile of staff from which the bank was recruiting 15, 16 years ago.
“So really it’s an addition to staff rather than a replacement.”
Mr Thwaite was speaking to the cross-party Treasury Committee of MPs, along with bosses from Barclays, Lloyds and HSBC.
Charlie Nunn, the chief executive of Lloyds, said AI could give customers “more personalised advice” for banking services.
He said this is currently always done with a “human in the loop”.
Mr Nunn was separately pressed on Lloyds’ record over the car finance mis-selling scandal, which has so far seen the bank set aside more than £1.1 billion in case of a possible fallout.
Mr told MPs: “At this stage we don’t have evidence of harm.
“That’s not one of the things that’s been focused on, or in fact that we’ve broken the regulation retrospectively.
“If those things were found to be true of course we’d then lean in fully to try to identify the customers that did experience harm as defined by the FCA (Financial Conduct Authority), and then support a remediation programme.”