Public Space 7
- trobins9
- Nov 24, 2023
- 2 min read
Updated: Nov 25, 2023
Artificial intelligence has been the most polarising and decisive technology of the post-COVID area. During its birth and slow integration into our everyday lives, artificial intelligence has raised many demanding questions, surrounding changes in industry and human behavior. In Ai’s most recent analysis, FintechOS conducted a comprehensive study revealing that 73% of financial services executives anticipate that Generative Artificial Intelligence (GAI) "will eventually take their job." This report, titled 'Generative Artificial Intelligence: The Technology Polarising the Financial Services Industry,' conducted a survey of senior technology decision-makers in major banks and insurance companies in the UK and the US. This study explored the diverse perspectives within the industry on the impact, implementation, and expectations related to GAI. Despite differing reactions an opinions between interviewees, there is a common consensus that GAI will reshape the workforce and lead to job displacement. The study also indicates a split within the financial services sector in relation to GAI's relation to human success, with 45% considering GAI a "friend" and 40% viewing it as a "foe."
The study highlights significant investments in GAI, with 50% of institutions already allocating resources to GAI initiatives. In the UK, investments range from £800K to £1.6 million, while in the US, companies commonly invest between $2.1 million and $5 million. The report notes a generational divide in perceptions, as younger respondents tend to view GAI more positively compared to their older counterparts. Furthermore, the study indicates that larger companies show a more defined perspective on the potential business impact of GAI, aligning their preferences with specific areas where the technology can offer significant advantages.
Teodor Blidarus, co-Founder and CEO at FintechOS, commented on the findings, stating, "GAI is a terrain marked by both excitement and apprehension, and our study explores the polarized sentiment that surrounds this groundbreaking technology." Blidarus emphasizes the imperative for financial institutions to embark on their GAI journey, acknowledging the potential risks and rewards associated with the technology. The study also reveals a unanimous expectation among respondents for a 20% increase in revenue due to GAI within the next three years, alongside concerns about job losses, with 57% of respondents anticipating an average headcount reduction of 30% over the same period. While these projected job loss numbers are frightening it also sparks new opportunity within the industry. GIA will open up new doors and possibilities and those who can harness the tools of GIA to better assist their work will benefit the most and maintain their job security while outperforming their competition. The biggest question will be finding these opportunities within the financial industry and capitalizing on them.
Your analysis on AI’s effect on the financial sector was really interesting. Typically, I’m very invested in the new AI wave but my scope has mainly been focused on its implications on the creative and tech world, however, reading this reminded me of how AI will potentially affect essentially every industry in the future. I really liked the part about job displacement and the mixed opinions on AI.
Although I conflict with the concept of artificial intelligence, I can say I am now more open to it than I would have been a while ago. Years ago I wouldn't have even thought how lucrative the industry would be and I enjoyed seeing how you broke it down. My parents told me to pursue something related to computer science–I didn't listen–but I see how now it is an important industry to get your hands in.
AI is one of the major business topics of the day. I think the poll you quoted where 45% say AI is friend v 40% viewing it an an enemy is very interesting. I think most people are trying to figure this out, whether they are more scared of AI replacing them or excited about its potential to make their life easier.
The stats from the FintechOS study about GAI in the financial sector are pretty eye-opening. I'm not surprised that there's a mix of excitement and concern about AI taking over jobs. It's a bit unnerving to think about a 30% reduction in workforce due to AI. But then again, the potential for increased revenue and new opportunities is intriguing. I guess it's all about adapting and finding ways to work alongside AI. It's kind of like learning to swim with the current rather than against it. I'm curious to see how this will play out and what new roles might emerge in finance with the rise of GAI. It's definitely a field to watch closely.
It was interesting to read your analysis on AI, and there are a lot of considerations all industries have during the rise of AI. AI tools have become more and more integrated into society at an incredibly fast pace. It seems like there are two main arguments to this, one being that AI will enhance human output and eliminating lower skill tasks will yield an overall improvement in human efficiency, whereas the other side claims that AI might stunt human abilities, and we will continue to lose basic skills as AI replaces our need to learn them. I'd love to hear your thoughts on this!