Mizuho Financial Group is planning to replace about 5,000 administrative jobs in Japan with artificial intelligence (AI) over the next 10 years, as the country’s third-largest lender tries to boost productivity.
“We are planning to enhance our earnings capabilities by shifting human resources to our focus areas by fully utilising AI,” Mizuho said. “It is not a headcount reduction.”
Japanese companies have been expanding their use of AI to improve efficiency, and investment in the technology is a key part of Prime Minister Sanae Takaichi’s policy programme. In the banking sector, institutions are seeking to pursue AI initiatives in ways that minimise significant workforce reductions as they face labour shortages.
Mizuho has about 15,000 clerical positions at its core banking units and other group companies, and affected employees will be transferred to other roles, the bank said. The Yomiuri newspaper reported the plans earlier.
Global banks are heavily investing in AI to improve operations ranging from product development to risk management. JPMorgan Chase spends about US$2 billion annually on developing AI technology, an investment that it says also saves about the same amount each year.
Japan’s bank chiefs have been trying to ease concerns that AI will take away jobs.
“I don’t think humans will lose their value,” Mizuho chief executive officer Masahiro Kihara said in October. “They can aim for more value-added work.” BLOOMBERG