Which industry's job market will be most affected by artificial intelligence (AI)?
According to a new report by Citi, just over half—54%—of jobs in the banking sector are highly capable of automation, while another 12% could be augmented by AI.
AI-powered clients can increase price competition in the finance sector. The balance of power could shift,” the banking company said in the report's introduction. “AI could be rapidly adopted by digitally native, cloud-based firms, such as FinTechs and BigTechs, with agile incumbent banks increasingly Follow up. Many incumbents, weighed down by tech and culture debt, may lag behind in AI adoption, losing market share.”
The report also noted that moving to a “bot-driven world” also raises issues of dealing with compliance, security, regulation and ethics.
Citi said, “Since AI models are known to mislead and create information that doesn't exist, organizations cannot afford AI chatbots to be completely autonomous and negatively impact the business financially or its reputation. run the risk of putting.”
Other industries with high potential for automation include insurance (46%), capital markets (40%) and energy (43%), the report said.
A Citi report from the International Monetary Fund (IMF) earlier this year claimed that the impact of AI would be particularly pronounced in advanced economies.
While about 40% of global jobs are exposed to AI, about 60% of jobs in advanced economies could be affected by the technology, as it affects high-skilled jobs.
PYMNTS wrote, “While half of these jobs could benefit from AI integration, the other half could see important tasks currently being performed by AI applications, potentially resulting in lower labor demand, lower wages and job cuts,” PYMNTS wrote. “In some cases, some jobs may even disappear,”
Meanwhile, PYMNTS recently explored how to rapidly combine technology like AI and automation to help CFOs during the accountant shortage.
“AI and ML are changing everything treasury, it's the equivalent of Industrial Revolution 4.0,” Jarrett Bruhn, managing director and head of data and AI in global transaction services at Bank of America, told PYMNTS. “When you think about what a treasurer does, trying to find operational and cost efficiencies, these tools and technologies fundamentally change how they can do their day-to-day work. “