The new study by FintechOS titled ‘Generative Artificial Intelligence: The Technology Polarising the Financial Services Industry’ has found that 73% of financial services executives fear generative AI (GAI) might replace their jobs eventually.
The study, which claims to be the largest of its kind, highlights the contrasting views within the financial industry about the implications, implementation, and overall impact of GAI.
The financial services sector is sharply divided, with 45% viewing GAI as a “friend” and 40% as a “foe.” This division stems from a mixture of excitement, curiosity, apprehension, and fear. Investment in GAI is substantial, with UK institutions spending between £800K and £1.6m, and US counterparts investing between $2.1m and $5m.
Furthermore, a striking 66% of executives anticipate an average revenue increase of 20% due to GAI in the next three years. However, over half of the respondents (57%) expect GAI to lead to job losses, projecting an average workforce reduction of 30% in the next three years.
The report is based on responses from senior technology decision-makers in major banks and insurance companies, with a focus on large-scale organisations in both the UK and the US.
There’s a marked difference in perceptions of GAI based on age demographics. Younger individuals (aged 25-34) are more likely to see GAI positively compared to older counterparts, with 47% of those aged 55 and above viewing it more as a “foe.”
While a sizeable portion of institutions are not yet using GAI, over 50% of the larger firms (with 3,000 or more employees) are currently implementing it. Interestingly, the US is ahead of the UK in terms of investment in GAI.
Businesses are yet to reach a consensus on the areas that GAI will most benefit. Customer service, credit checks, lending automation, and market research are all areas being considered for its application.
FintechOS co-Founder and CEO Teodor Blidarus said, “GAI is a terrain marked by both excitement and apprehension and our study explores the polarised sentiment that surrounds this groundbreaking technology. While opinions within the financial services industry are deeply divided, there is one common consensus: the expectation that GAI will boost revenues but inevitably reshape the workforce and displace jobs.
“Every financial institution has started its GAI journey and it’s imperative to take the first step – even if it’s a small one – to avoid being left behind. Only by starting the journey now, and understanding the implications can be mitigate the risks of GAI and better reap the rewards.”
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