Artificial intelligence (AI): a threat, or an asset? That’s the question financial professionals may find themselves asking more often than ever before, leaving many to consider their future career validity now that AI has made industry-wide waves.
Some believe that this fast-growing AI revolution — with the potential to transform finance in untold ways through data integration and other technological advancements — may jeopardize their jobs. Others perceive AI as an invaluable tool to encourage efficiency and push the industry into the future.
Does AI pose a threat to finance professionals, an opportunity, or both? Let’s take a look.
Are Fears Over AI Unfounded?
Despite its many benefits and advantages, many segments of the financial world are concerned that AI poses a threat to their jobs. They worry that AI-powered systems will replace human workers, making their skills and expertise obsolete, and their jobs redundant.
These fears manifest themselves in a few ways:
Job Displacement Through Automation
One of the primary concerns is that AI will automate many of the tasks currently performed by finance professionals. For example, AI-powered systems can analyze financial statements and other data, perform risk assessments, and make sound investment decisions. And if AI becomes faster and more accurate at these talents, outpacing its human counterparts, this could potentially make many financial jobs redundant, including those of analysts, traders and wealth managers.
Replacing Human Expertise
Will a machine learning program become smarter than the humans who programmed it? Like something out of a sci-fi film, it’s a legitimate concern for finance professionals. As AI algorithms become more sophisticated, they can potentially perform many of the tasks that finance professionals currently do, such as financial analysis, risk management, investment decision-making and improved fraud detection and regulation compliance. This could mean that human beings are no longer needed to provide their expertise and insights, as AI-powered systems will be able to do the job just as well … if not better.
An AI-Preferred Customer Experience
Nobody likes to be on hold when calling customer service just to talk to a robot, but many financial professionals fear that this is just what customers may soon come to prefer. As AI-powered systems provide personalized investment advice and portfolio management, it points to improving the customer experience in finance. For instance, robo-advisors can recommend investment strategies based on a client’s risk tolerance and investment goals, which can be more accurate and tailored to their individual needs than traditional wealth management services.
AI Presents Opportunities for Finance Professionals
It wouldn’t be truthful to assert that AI poses no threat to the finance world. As it advances and evolves, it places the industry’s workforce in a precarious situation where AI’s influence can’t be ignored. But what can be confirmed for certain is that AI is like a tool, a trusted ally, to human manpower, helping us do our jobs better rather than replace them outright. Here’s how:
AI Helps Improve Human Efficiencies
AI automation goes from a threat to an opportunity when the right tasks are automated — namely, routine, day-to-day functions like data entry and processing. Taking away these necessary financial evils from the hands of the staff accountant or bookkeeper means freeing up their time to focus on better, more high-level tasks that require real, human expertise, such as investment strategy and customer relationship management.
AI Enhances Better Decision Making
Helping finance professionals make better investment decisions, manage risks more effectively and identify new opportunities is another AI asset. By analyzing vast amounts of data and detecting patterns, AI can provide valuable insights that may not be apparent to human analysts, aiding them in complex business matters. AI can also help finance professionals develop and test investment strategies more quickly and accurately, and manage risk more effectively.
AI Provides Real-Time Financial Insights
AI can help finance professionals stay up-to-date with the latest market trends and developments. By analyzing news articles, social media, and other sources of information, it can offer real-time insights into market trends, sentiment, and other factors that can affect investment decisions. Through this, finance professionals can stay ahead of the competition.
AI and Financial Professionals: Partners in Success
It’s important to remember that AI is not a replacement for human intelligence and expertise, but rather a tool that can help finance professionals work more effectively. While AI may be able to perform some tasks more efficiently than humans, it cannot replace the creativity, intuition and critical thinking that humans bring to the table.
TalentSpark is committed to matching financial professionals with career opportunities where they can bring all those skills and assets to the table. Our team is dedicated to matching local and national talent with Idaho’s best clients. Contact us today if you’re either an employer scouting for talent, or a professional looking to bring your talents to your next employer.