Artificial intelligence is transforming the business world, and the financial services sector is no exception. AI has the potential to automate and streamline many of the processes inherent in banking and finance, and executives are already beginning to understand its potential and plan for implementation.
Consulting firm PwC recently surveyed U.S. financial services executives about how AI fits into their future plans. From the looks of it, executives are betting on major changes and improvements as they integrate AI and machine learning into their business processes. Half of those surveyed expect AI to increase their revenue and profits, while 48 percent expect it will improve their customers’ experiences. And 42 percent believe AI technology will result in innovative new products.
Research indicates the finance sector is already using a variety of baseline AI technology tools, including intelligent process automation, which takes care of non-routine tasks and processes. AI is also being used to improve fraud detection and anti-money laundering efforts, and is steadily being leveraged for portfolio management, trade execution and to help provide more personalized services to clients.
Indeed, AI has the potential to completely transform the financial services workplace, but executives also understand it will bring challenges along with its many benefits. They identified the greatest challenges as security, privacy, bias and regulatory issues, with 40 percent of executives surveyed indicating that AI trustworthiness was their greatest challenge moving forward. Consequently, 64 percent of leaders are striving to create transparent, explainable and provable AI models, while 60 percent will focus on improving AI security using validation, monitoring and verification. A further 54 percent of executives will strive to improve governance using AI models and processes. And 60 percent of executives believe that integrating AI and analytics to gain business insights is a top priority this year.
PwC found that AI has the potential to contribute a whopping $15.7 trillion to the global economy by 2030, completely transforming the future of the workplace. And one of the biggest challenges of AI adoption is a shortage of workers with the necessary skills to handle an AI-enabled work environment. In the finance sector, nearly 60 percent of executives surveyed plan to implement AI-inclusive continual learning initiatives to provide their employees with the necessary skills to work with AI technologies. And more than half will develop a workforce plan that pinpoints the new skills and roles AI integration may require.
To provide information and education about how AI is transforming the workplace and what companies and workers alike can expect moving forward, TMC is hosting a Future of Work Expo in Fort Lauderdale, FL. The event, which will take place from February 12-14, 2020, will explore how AI and machine learning may be used to improve business communications, collaboration, sales and marketing and contact centers and customer service.
Future of Work Contributor
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