Will AI Really Destroy Finance Jobs?
The
rapid rise of Artificial Intelligence (AI) has surprised almost
everyone. Once notorious for providing underwhelming results amid
high expectations, it has grown in prominence in recent years. As the
capabilities of this innovative technology have become more and more
visible, AI is being actively deployed in several businesses across
sectors. And the financial industry is no exception. They have
gradually come to acknowledge the true potential of AI as it can also
help companies find candidates
for finance jobs.
However,
AI is more in the news as a disruptive innovation. Something that
will disrupt the ecosystem of the job market. For people looking for
finance as a career, AI is seen as a worrisome factor. After all,
computers have beaten the best of human minds with ease. And people
believe AI is also on the same course.
The
not-so-good news
AI
has many advantages over humans, though. They don't take a day off or
get sick. It is also more productive and inexpensive compared to
salaries for an entire team. Several predictions indicate that by the
end of 2025, AI solutions, in its various forms, will help businesses
save approx. $6trillion in employment expenses, boost productivity by
approx. 30% and gain approx. $1.6 trillion in performance.
Unsurprisingly, financial corporations are already exploring this
technology.
The
good news
However,
many in the market believe AI will not displace all finance
jobs in Australia.
Investment fund managers like
Aspect Capital, Winton Capital, and Two Sigma have collectively called
the AI phenomenon as overhyped. And they will use it in a very
limited manner. Some finance companies may rush to adopt this
technology. But, most companies will be very cautious while
implementing this technology. After all, finance is an extremely
regulated sector. And it does not have any specific written laws for
automation. Also, standards and procedures are not likely to
transform overnight.
Automated
systems, even with the robust security apparatus, are always
susceptible to data frauds and thefts. In fact, customers - the bread
and butter of the finance industry - will be averse to the idea of
their services being outsourced to non-humans.
The
fact, also to be noted, is that many finance companies do not
actually have the means to program or build an AI machine. Many will
rather adapt to sharing a single platform to meet some of their AI
needs while continue to employ humans to fulfill their primary
functional requirements.
The evolution of AI will surely generate many new types of jobs. But that
doesn’t mean that humans will not be recruited. After all, you do
need humans to maintain and program the huge systems. Companies need
humans to look after servers that store huge amounts of data. Finance
companies will need humans for accurate interpretation and decision
making on the information received through AI. Where money matters,
it's not safe to leave everything to a machine.
Computers
have not taken humans out of the race as was thought out to be
earlier. In fact, both can co-exist in new innovative ways today,
unlike before. Finance matters are best understood by humans. And AI
will only enhance finance jobs,
not kill them.
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