Agwunobi Joy
Over half (73%) of financial services executives believe that generative AI (GAI) might eventually replace their jobs and have also raised concerns about its impact on data privacy, security, and compliance, according to a new study by FintechOS.
The study titled “Generative Artificial Intelligence: The Technology Polarising the Financial Services Industry, found that 73 per cent of financial services executives.
The study, which is reportedly the most comprehensive of its kind, shows that financial services professionals have conflicting views about the implications, implementation, and overall impact of GAI. The survey found that 45% of financial services professionals view GAI as a “friend” while 40 per cent view it as a “foe,” revealing a mix of excitement, curiosity, apprehension, and fear.
Moreover, a striking 66 per cent of executives anticipate an increase in revenue by an average of 20% in the next three years as a result of GAI. However, more than half of respondents (57%) expect GAI to result in job losses, projecting an average reduction in workforce of 30 per cent in the next three years.
The report is based on responses from senior technology decision-makers in major banks and insurance companies, with a focus on large-scale organisations in both the UK and the US. The survey responses were analysed alongside interviews with a number of industry thought leaders.
The research suggests that financial services companies have not yet agreed on which areas GAI will benefit the most. Customer service, credit checks, lending automation, and market research are some of the areas in which GAI is being considered for implementation. On the other hand, there is a near consensus that GAI will have a disruptive impact on jobs, replacing humans and augmenting others. At the same time, the respondents anticipate that jobs in areas such as AI implementation, data science, and product development are likely to be created.
According to Teodor Blidarus, co-founder and CEO of FintechOS, the study shows that GAI is a subject of excitement and concern and explores the polarized feelings that surround this revolutionary technology. He observed that even though opinions within the financial services industry are strongly divergent, there is one common understanding: that GAI will increase revenues but inevitably alter the workforce and cause some jobs to be lost.
“Every financial institution has started its GAI journey and it’s imperative to take the first step – even if it’s a small one – to avoid being left behind. Only by starting the journey now, and understanding the implications can we mitigate the risks of GAI and better reap the rewards,” Blidarus advised.
