The financial services industry is investing heavily in the technology that makes artificial intelligence work. Now it needs to make the same investments in the talent that will make AI work for their businesses.
Almost all large financial services firms are introducing artificial intelligence to their strategies. In fact, more than 95% of firms participating in a new Broadridge study say they are investing in AI. These firms are working to integrate AI into client-facing, front-office functions such as customer service and research, as well as into operations, data management, risk, fraud and virtually every other area of the business.
Senior leaders at these companies are making AI a priority because they understand the potential impact AI and machine learning could have on their businesses and also on society, in general. Experts project that generative AI (GenAI) applications could add up to $4.4 trillion in value to the global economy—every year!
Digital Transformation
Estimates like those have prompted financial service firms around the world to make AI a key part of ongoing efforts to remake their businesses with digital technology. Although the financial services industry has been slow to adopt new technology, firms are investing heavily in digital transformation. Once firms modernize their technology platforms by moving to the cloud, centralizing data and making other upgrades, they are in position to integrate powerful innovative tools such as AI and ML. Among financial service firms categorized as digital leaders, 44% are making moderate to large investments in GenAI—more than twice the level of nonleaders.
These early adopters are laying out a road map for other firms to follow when it comes to building the technology platforms needed to support AI. However, even among these advanced companies, one critical element is being neglected. Firms will never realize the ultimate potential of their AI investments if the people within the organization don’t know how to use it effectively. Despite the push to build out AI capabilities, the majority of financial services firms have not implemented a defined strategy for reskilling their workforces for the coming era of AI.
Upskilling Across The Board
The need for upskilling is apparent for IT staff such as developers, security professionals and data engineers. However, since AI is being integrated into nearly every business function, it’s equally important for companies to train teams outside of tech roles, creating GenAI experts throughout the company and teaching employees across the organization how to integrate AI into their workflows.
Roughly 46% of companies in the survey have implemented a reskilling plan to help employees manage the general impact of AI, and about 45% allow staff to use GenAI for general work purposes. However, only about a quarter of companies are directly training staff on how to use GenAI tools.
Empowering Employees
Even fewer companies are talking to employees about the bigger issue of how to best apply AI to their jobs and get the most out of the technology. AI and ML applications will automate many of the routine tasks that now take up time. That will free up staff to work directly with clients and focus on higher value-added activities. In so doing, it will change the nature of many positions and could change the skill sets needed for many roles. For example, LTX’s new BondGPT+ solution has the potential to dramatically reduce the amount of time bond traders spend collecting and analyzing market information. By instantly processing information about more than 30,000 corporate bonds, the AI-powered tool will dramatically increase the amount of real-time data traders have on hand to make decisions, while freeing up hours of traders’ time. Companies should be working closely with professionals in all fields to determine how best to use this time.
About 55% of survey respondents say the rise of AI will create a greater need for strong analytical and critical thinking skills. Of course, employees will have access to AI tools designed to boost those exactly those capabilities. Organizations are already using large-language models (LLMs) to improve data-driven decision-making and analysis.
Figuring out ways to integrate these tools that empower staff and enhance business results will be one of the biggest challenges facing financial service firms and, indeed, all companies. As companies build out the technology platforms that will enable AI, they should also be building out programs to educate employees about the practical, legal and ethical aspects of AI. Upskilling the workforce to thrive in an environment fueled by AI applications is the only way to unleash the full benefits of this powerful technology for companies and employees alike.
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