Is AI a job killer in the finance industry? (05/2024)

Almost three-quarters (73%) of executives working in financial services expect to eventually be replaced by Generative AI (GAI), according to a recently released study.

The introduction of generative AI (GAI) is polarizing the financial services industry, with sentiments ranging from excitement to apprehension about its potential impact.

A recent survey of 502 senior decision makers in banking and insurance produced by FintechOS revealed significant investments in GAI amidst divided opinions on its benefits and risks.

While GAI promises major productivity gains, its implementation surfaces concerns about workforce reductions. Over 70% of respondents believe GAI could eventually replace their jobs. This expectation of displacement contrasts with the predominantly positive view that GAI is more "friend" than "foe."

Nonetheless, GAI investment is charging ahead. Over half of large institutions are already using GAI, especially for customer service. Looking ahead, most research and implementation efforts target new business queries and lending automation.

But consensus breaks down on GAIs leading applications. Virtually equal proportions identify

• customer service,
• credit checks,
• lending, and
• data analytics

as top contenders. Such fragmentation suggests GAIs wide-ranging potential is still taking shape.

Views also diverge on optimal ownership of GAI strategy, split between chief security and chief operations officers. This may reflect GAI’s dual nature as a security and efficiency play.

The most resounding point of agreement? GAI adoption will boost revenue. Two-thirds of respondents forecast a 10-30% increase in the next three years.

Its clear that GAI is set to revolutionize financial services amidst polarization on its impacts. While implementation moves forward, its complete disruption remains unclear. Legacy constraints around data and systems raise adoption barriers. Nonetheless, standing still equates to falling behind. The scale of predicted transformation demands proactive steps today. As GAI infiltrates the fabric of finance, the winners will be those who harness its capabilities early to personalize offerings and accelerate innovation. The future competitive landscape may come down to how financial institutions choose to shape GAI instead of being shaped by it.

About ECEBiS

At ECEBiS you are going to understand what will change the trajectory of the financial industry. You will develop a transversal view on the forces that are shaping the future financial industry.

From payments and lending to investment and money management, tech providers are actively shaping the future of the financial landscape - even pushing the boundaries of currency itself. You might evaluate the impact of robo-advising on health management and examine portfolio recommendations from a diversified set of RAs and attempt to identify the factors behind proposed splits between asset classes.

ECEBiS is a platform in academic research on new business models and innovative products. We investigate in fast moving sectors that are reshaping the financial world of tomorrow and pioneering new ways of doing business. We want to attract outstanding ECEBiS students in finance with experiences and exposures, who intend to

Doctorate of Business Administration (DBA) in Finance (online, 3 years part-time)

• develop knowledge on challenges that shape the future of financial industry

• engage with a program that offers the convenience of online learning with the benefits of accreditation and global reach.

• raise awareness on the importance of fintech and sustainability in finance

• identify the best practices in the financial industry to spread positive changes

• Go beyond the virtual classroom and network with other ambitious executives and entrepreneurs as you expand your credibility and expertise in the world’s most transformative fields.