Advances in artificial intelligence continues to impact industries and work environments with the finance industry being no exception. The Task Force on Artificial Intelligence of the House Financial Services Committee held a hearing entitled, “Robots on Wall Street: The Impact of AI on Capital Markets and Jobs in the Financial Services Industry,” on December 6 at 9:30 a.m.
“Financial machine learning creates a number of challenges for the 6.14 million people employed in the finance and insurance industry, many of whom will lose their jobs — not necessarily because they are replaced by machines, but because they are not trained to work alongside algorithms,” Lopez de Prado told the U.S. House Committee on Financial Services.
During the almost two-hour hearing, lawmakers asked experts about racial and gender bias in AI, competition for highly skilled technology workers, and the challenges of regulating increasingly complex, data-driven financial markets.
Kirsten Wegner, Chief Executive Office of Modern Markets Initiatives told the committee “As further automation and AI capacity emerges, U.S. companies will need to innovate and invest in leading technology to continue to compete in a global marketplace”
She went to say that the as the pace of technology quickens and companies continue to innovate, there will be further growth in automation especially in the Asset Management Industry. This is due to AI being used “for Know Your Customer services to understand risk tolerance, investment goals, and to help humans make more informed decisions, and deliver performance results in an increasingly competitive and global industry.”
At Swiss investment bank Credit Suisse, Laura Barrowman, chief technology officer, revealed that the company is retraining employees who have been replaced with AI. “Globally, if you look at cyber skills, I think there is a deficit,” Barrowman told Business Insider’s panel at the World Economic Forum. “There is such a shortage of skills, and you need people who have that capability.”
In a report by Business Insider, banks are already investing into automation through customer identification, mimic live employees and personalised insights. JPMorgan is cleaning thousands of databases to make room for machine learning tech. Citi president Jamie Forese said in 2018 that robots could replace as many as 10,000 human jobs within five years.
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