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Wednesday, October 16, 2019

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Around 500,000 UK bank workers could be affected by AI

Theo Osborn | 13:25 Thursday 11th April 2019

Around 500,000 UK bank workers could be affected by AI technology by 2030, according to new research.

The Artificial Intelligence in Banking Report by IHS Markit found that job losses and job re-assignments could be expected as AI increases enterprise productivity.

“Banking employees potentially impacted by the introduction of AI includes tellers, customer service reps, loan interviewers and clerks, financial managers, compliance officers and loan officers,” said Don Tait, principal analyst at IHS Markit.

“All in all, AI technology will reconfigure the financial industry’s structure, making the banking sector more humane and intelligent.”

The report also stated that 1.3 million bank workers in the US could be affected and, if mirrored globally, tens of millions of banking and financial services jobs could be impacted in the coming decade.

AI in banking business was estimated to be worth $41.1bn in 2018, but this is expected to rise to $300bn by 2030.

Don added: “The innovative capabilities AI will bring to financial services will be transformative.

“AI is poised to challenge and blur our concepts of computing and the ‘natural’ human.

“This sea change will require both businesses and governments to develop expansive foresight and critical understanding of the full effects of digitisation and emerging technologies.”

North America is projected to be the largest market for AI in banking between 2018 and 2023, with Asia Pacific expected to become the leading region in 2024.

“Countries like China, Japan, South Korea, Hong Kong and Singapore are likely to drive the demand for AI within the banking sector over the next 10 years,” Don concluded.

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