Thursday, October 26, 2017 Stamford, CT USA — Artificial intelligence is transforming financial services across customer support , research and sales and trading. As it boosts productivity and lowers costs for banks and financial service firms, AI will also threaten financial service jobs—about 15% of which are at risk, according to a new report from Greenwich Associates.
The new Greenwich Report, AI: The Coming Disruption on Wall Street, provides a detailed definitions and an analysis of how financial service firms are applying technology such as machine learning, natural language processing and robotic press automation, and a highlights some of the leading technology providers in the area of financial service compliance, customer support, research, sales, and trading.
The report concludes that three-quarters of banks and financial services companies will be leveraging artificial intelligence in their businesses within the next 12 months. Almost one-in-five have already implemented AI technology, most commonly in research/report generation and customer support.
That usage represents only the very tip of the iceberg. Cognitive computing has the ability to analyze and process vast quantities of data much more efficiently than a human can, enabling significant productivity enhancements. Of 100 financial service executives interviewed by Greenwich Associates about AI, 90% agree that AI will offer significant productivity benefits.
“Machine learning techniques are helping banks analyze and cross reference vast swathes of data to help them in research and analysis, trading and compliance,” says Richard Johnson, Vice President of Market Structure and Technology at Greenwich Associates, and author of the report.
Financial services executives recognize that some jobs on Wall Street are at risk of disruption by artificial intelligence. “The jobs at risk are those that are the most routine and the most automatable,” says Richard Johnson. “Those employees who are in that type of role now, may well find themselves without a seat if they are unable to transition to higher value activities."