According to industry experts advances within artificial intelligence and automation will wipe out more than 50% of the jobs in the financial sector in the next 10 years however it is going to take some big investments to achieve automation at that scale.
James D’Arezzo, CEO of Condusiv Technologies said,
“Unless banks deal with the performance issues that AI will cause for ultra-large databases, they will not be able to take the money gained by eliminating positions and spend it on the new services and products they will need in order to stay competitive,” he said.
He also thinks that while hardware upgrades often solve these problems this comes hand in hand with sometimes inordinate expense with the Tokyo Institute of Technology Global Scientific and Computing Center as an example of this.
The centre is on the verge of developing a supercomputer to meet the demands of artificial intelligence and big data applications. At the current cost of hardware, it would take around $50 – $100 Million dollars to build the supercomputer.
John Cryan, CEO of Deutsche Bank said,
“In our bank we have people doing work like robots,” he said. “Tomorrow we will have robots behaving like people. It doesn’t matter if we as a bank will participate in these changes or not, it is going to happen.”
The improvement in the processing power and cloud-based technologies are helping to automate the task that was once thought impossible. D’Arezzo who is currently working in the financial sector to improve the performance of these applications said,
“It’s an explosion of data, and then you have AI on the other side which increases that information load,” he said. “This puts a major stress on the ability of the financial industry to process all of that data. That industry is spending more on IT than any other industry, including healthcare and manufacturing.”
Some of the potential uses of AI in banking is automated customer support, fraud detection, claims management, insurance management, automated virtual financial assistants and predictive analysis for customers with low net worth.
Bhagwan Chowdhry, a professor of finance and economics at UCLA says that while technology may eliminate some jobs which require less thinking humans will be assigned to jobs they are better at doing.
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Source: MercuryNews
