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AI is set to replace routine white-collar roles, Simon Johnson says

Johnson, now chair of the UK AI Economics Institute, said AI could automate parts of banking such as account adjustments, customer service, and statement preparation.

Reported · Written up by our desk · Asia

Simon Johnson, a professor at MIT and former chief economist of the IMF, said AI is likely to replace workers doing routine tasks across businesses, with an early impact on roles held by people in the middle of organizations and at the start of their careers. He described information processing and compliance work as particularly exposed as AI capabilities spread.

Speaking in an interview on the sidelines of the UBS Asian Investment Conference in Hong Kong, Johnson argued that the technology poses challenges to both economies amid intensifying US-China competition. He said it is still early to know the full outcome, but the default expectation is that AI will take over repeatable functions.

Johnson said that even in banking, while relationship management still requires human staffing when customers need to invest, many other activities can already be handled by AI. He cited decision and processing functions including preparing statements, customer service, and making adjustments to customers’ accounts.

The remarks come after the British government announced Johnson as chair of its new AI Economics Institute on June 8, the SCMP Economy said.

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