As artificial intelligence (AI) continues to grow faster than ever before, the financial industry finds itself at the cusp of a significant transition, one that involves heavy layoffs in companies such as Citigroup, JPMorgan, and Goldman Sachs in the next three to five years. According to experts, this change will be the result of AI’s implementation and development in the back-office, middle-office, and operations of an organization to improve profitability.
Tomasz Noetzel, a senior analyst at BI states that back-office tasks such as customer service and know-your-customer (KYC) will become AI-dependent as they are most at risk. However, the analyst emphasizes that AI will not make people unemployed, but centers around the reshaping of the tasks employees perform, thus allowing the development of cognitive functions to be the focal point for the employee’s role.
A report by BI has predicted that Generative AI will increase productivity by at least 5 % in most businesses, additionally, they state that AI will bring up to $180 billion for the economy, from 12% to 17% in profit. While AI takes lien with streamlining processes making it easier for customers and clients, using bots to replace the employees who work alongside clients is reshaping the idea of customer service.
Even though the company is making employee layoffs, it still raises a concern regarding the future of work, to which leaders such as Jamie Dimon of JPMorgan respond that AI is going to help with work-life balance and remove all the repetitive tasks. This does not dictate a traditional work structure but may encourage engaging jobs and enhance productivity.
As AI makes its way in attempting to carry out this transition, it is clear without a trace of doubt that one aspect of finance will transform, especially when coupled with AI, as the efficiency and tasks of humans will be reinvented.
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