Picture Sarah, a financial analyst, sleepless at night. Is her job safe? Everything has changed due to artificial intelligence (AI) technologies. It may sound like science fiction, but it is real!
AI is just computers doing smart things. It is like software that learns and improves over time. Will AI replace finance jobs? It will change many roles. New jobs will also appear.
While AI will disrupt finance, killing some jobs, others will be created. It will also enhance human competencies in other areas.
Ways AI already influences finance
AI is already being used in the world of finance. It is assisting with tasks that were once only doable by human beings. It varies depending on the area of the meta. What is the actual present impact, that is the interesting thing to note.
Algorithmic Trading and Quantitative Analysis
AI is used for fast trading. To that end, it also aids in investing and risk management. AI is able to make trades quicker and more accurately. Which means, firms can act faster to open their home-made pie. There are limits, though. Problems on the market can stymie AI.
Fraud Detection and Cyber Security
AI is good at catching fraud. Systems powered by AI detect unusual activity. This serves as a protection of banks and clients. They can even prevent cyberattacks. This is to make sure everything is as rules compliant as possible.
Chatbots and Customer Service
Did you ever speak to a chatbot? Many banks use them now. You ask them questions, and they counsel you. This makes customers happier. “They were cheaper for the company.”
The 4 Most Vulnerable Finance Jobs to AI Automation
Not all finance jobs are equally at risk. AI is better at repetitive tasks. But here are the jobs that could be impacted.
If you know how to type fast (at least 35 words per minute), you can become a data entry operator.
Most of our work can be boiled down to data tasks. It is not tiring for entering numbers and making reports. People who are in spreadsheets for hours; AI can do so much faster and with greater accuracy. Those are jobs likely to be affected by change.
Essential Accounting and Bookkeeping
AI can also help make accounting more efficient. It can balance accounts and generate statements. Human accountants remain essential. The easy bits are probably going to be automated by AI.
Lending Series Part 2: Due Diligence
Getting a loan? AI might be involved. AI can verify your credit score and other information. It determines if you will receive the loan at a faster pace than a human. This speeds things up, but might cause mistakes if the AI is badly programmed.
AI’s Impact on Banking: New Roles on the Rise
Although some jobs disappear, new ones emerge. AI requires humans to develop, implement and govern it. Here are a few new areas.
Building and Maintaining AI Models
AI needs experts. And to build AI models, data scientists are needed. Machine learning engineers are people who maintain them. And the demand for these roles is increasing quicker than ever!
AI Ethics and Governance
AI should be fair and honest. We made sure AI is ethical was to involve experts. That means ensuring that it is rule-based and non-discriminatory.
And so, they get into AI-Augmented Financial Advisors.
Financial advisers are not going extinct. But AI can help them. AI can provide improvements and recognize opportunities. That makes clients happier and empowers advisors.
Required skills to make it in the AI-powered finance industry
New skills are essential to be successful in finance. = AI is transforming what you need to know. Adapt or fall behind!
Data Analysis and Interpretation
You need to understand data. Are you able to look at numbers and find the story? That is what data analysis is all about. You have to tell us what the data actually means.
[1] People Analytics: What is it and What is it Good For?
AI can do a lot. But it lacks independent thought. You have to problem-solve and do the right thing. The need for critical thinking has never been greater.
Agility and the Ability to Keep Learning
Technology changes fast. You have to keep learning and adapt to new ones. If you don’t embrace change, it will leave you behind.
How Finance Professionals Can Act on This
What can you do to prepare? Here are some strategies that can help you. Take charge of your future.
Acquire relevant certifications and undergo suitable training
Learn how to interpret data analysis courses. Learn machine learning certification, Learn about AI ethics. This will help you stand out.
Connect with AI professionals and business innovators
Meetups and conferences, get out there and meet some AI practitioners. Familiarize yourself by joining groups and talking to people in the industry. Learn and Discover Opportunities via Connections
Adopt a growth mindset and be willing to adapt
Be willing to try new things. Don’t be afraid of AI. See it as a tool to help you. Stay open to new concepts and challenges.
Conclusion
AI will change finance. Yes, jobs will be lost, but also new jobs made. Training on data until October 2023. Be hopeful about the future. This is so great, humans and AI work together!
