A UK government-commissioned report by the Financial Services Skills Commission (FSSC) estimates that artificial intelligence (AI) could automate around 30% to 50% of tasks in most financial services roles.
Analysis of how banks and other financial service providers are leveraging artificial intelligence was used to create this research. The research focuses specifically on automating tasks instead of fully replacing workers.
It found that many different types of organizations (operational departments, customer support, compliance, etc.) within the financial services sector are currently using AI. Future adoption of AI across the industry will only continue to grow.
Additionally, the report states that automation will change work structure and how people interact through technology. Routine or frequently repeated tasks are more vulnerable to being automated by AI than are more sophisticated or judgmental tasks.
There will be a higher demand than ever before for people with skills needed to handle data, follow governance procedures, be software engineers, and understand the results from AI. This insight coincides with the findings of Morgan Stanley team, estimating that AI-assisted programming evolution is expected to make developers more valuable within organizations and may fuel headcount growth of between 1.6% and 10% annually through the end of the decade.
“Artificial intelligence and other disruptive technologies are ushering in a period of profound change for financial services. While the opportunities for innovation and growth are clear, realising them will depend on strong leadership, robust governance, high-quality data, continued focus on customer outcomes and, crucially, prioritisation of skills.”
Claire Tunley, chief executive of the FSSC
According to the Financial Services Skills Commission, this report was created in response to a request from the UK Government to evaluate how much demand there will be in years to come to fill skilled positions within the financial services industry that use Artificial Intelligence technology.
Also noted within the report is that the workforce working in the financial services industry will experience an increased turnover rate over the next 10 years due to the high level of retirements and high level of turnover, leading to a continued need for skilled roles.
Lastly, the report identifies differences in the level of AI quality being implemented among companies, with some companies using AI solutions in a production state while other companies are still in pilot stages.
Broader industry research indicates that AI adoption in financial services is already widespread, with most firms globally reporting some level of AI use or experimentation in operations and decision-making processes. A recent McKinsey survey shows that more than half of organizations globally are now using open source AI technologies in their operations.
The report also notes that a follow-up publication is planned to provide more detailed recommendations for firms, policymakers, and training organisations.
