In a survey by World Economic Forum and the Cambridge Centre for Alternative Finance explains that 64% or nearly two-thirds of financial service leaders will be mass adopters of AI. In adopting AI, financial service firms will be able to use AI for risk management, customer service, revenue generation, and much more.
Over 150 senior financial service executives responded on the impact AI will have on the industry, where they concluded that there will be a gap between those who implement AI quickly and those that lag behind. This gap will have a huge impact on investment levels and returns for those companies. But not everyone is ready, the survey also showed that 70% of respondents believed they are less prepared for AI.
AI entering the economy and transforming the financial service industries also has its drawbacks. According to the survey traditional financial service firms expect AI to reduce 9% of net jobs by 2030. As companies begin to adopt more AI to increase profitability and expand their companies, more changes are expected to be come within the industry and its consumers.
AI Will Transform Financial Services Industry within Two Years
LIS 4022 Spring 2020 