BUSINESS
Bank shares jump after plan to replace jobs with AI
Surging share prices for Australia’s banks signal investors will reward businesses that chart courses to use artificial intelligence to cut costs, raise productivity, and lift profits.
Bendigo & Adelaide Bank shares have jumped 10 per cent since Thursday after it revealed plans to cut its wage bill by 10 per cent via the loss of hundred jobs to be automated by AI in a move that will save it up to $75 million per year by 2028.
Over the past year, the S&P/ASX 200 Financial sector — dominated by the big four banks — has climbed 23.3 per cent as investors eye their potential to take out costs.