Tom had been working at a fintech company for five years when his boss announced that they were implementing a new AI system to take over some of their data analysis tasks. Tom was apprehensive, but tried to stay positive. However, within a few months, he found himself with less and less to do, as the AI was able to analyze data much faster and more accurately than he could. Soon, Tom was out of a job.
Tom's story is becoming more and more common in the fintech industry. As technology advances, AI is being used to replace human workers across a variety of industries, and fintech is no exception.
In fact, according to a report by PwC, AI could replace up to 30% of jobs in the financial services industry by 2028. Some of the tasks that AI is already being used for in fintech include fraud detection, algorithmic trading, and customer service.
Of course, not all fintech jobs are at risk. Many roles, such as those that require human interaction or creativity, are unlikely to be replaced by AI any time soon. However, for those in roles that involve data analysis, there is a definite risk of being replaced by a machine.
One example of AI replacing humans in fintech is in the area of algorithmic trading. In 2016, BlackRock, one of the world's largest asset managers, announced that they were replacing some of their human traders with an AI system called Aladdin. The system is able to crunch huge amounts of data and make informed trading decisions faster and more accurately than any human trader could.
Another example is in the area of customer service. Many fintech companies are using chatbots powered by AI to deal with customer queries and complaints. These chatbots are able to provide fast and efficient responses, and can handle a large volume of inquiries at once, meaning that fewer human customer service agents are needed.
So, are fintech employees at risk of being replaced by AI? The answer is: it depends. While some roles are definitely at risk, others are likely to remain safe from automation. However, it's important for those in the fintech industry to be aware of the potential risks, and to be prepared for changes in the job market.
Here are three key takeaways:
While AI may be a threat to some jobs in fintech, it's also worth noting that it can be a powerful tool for those who are willing to embrace it. By learning how to work with AI and use it to their advantage, fintech employees can become even more valuable to their companies.
For example, rather than fearing the rise of AI, fintech workers might consider taking courses in data science or machine learning, allowing them to work alongside and manage AI systems, rather than being replaced by them.
Another practical tip for those in the fintech industry is to focus on building skills that are harder to replicate with AI, such as creativity, communication, and emotional intelligence. By developing these skills, workers can become invaluable members of their teams.
References:
Hashtags:
Category: Fintech
Curated by Team Akash.Mittal.Blog
Share on Twitter Share on LinkedIn