Three-quarters of finance executives expect generative AI to replace them

Generative artificial intelligence (GenAI) is expected to take over the jobs of three-quarters of current financial services executives, according to a survey.

Following a survey of around 500 executives at major banks and insurance companies, FintechOS’s Generative artificial intelligence: the technology polarising the financial services industry report revealed that 73% of executives believe GenAI will “eventually” take over their jobs.

The survey revealed that 57% expect GenAI to lead to 30% reduction of financial services companies’ workforces over the next three years, as well as an even split of executives that consider generative AI a friend or foe, according to the FintechOS survey.

Teodor Blidarus, CEO at FintechOS, said there is both excitement and apprehension around GenAI in the financial services sector: “While opinions within the financial services industry are deeply divided, there is one common consensus: the expectation that generative AI will boost revenues but inevitably reshape the workforce and displace jobs.”

The survey found that half of the biggest finance firms are investing in and implementing GenAI already. In the UK, NatWest Bank recently announced it is working with IBM to use GenAI to extend the capabilities of its virtual assistant.

GenAI technology will be used by the bank’s virtual assistant, Cora, to enable it to offer more information to its customers through conversations with them. NatWest is tapping IBM’s data platform, as well as the IT giant’s Watson AI technology, to create Cora+ as part of its customer support.

According recent research from IBM’s Institute for Business Value, over 40% of banking and financial markets leaders expect GenAI, deep learning and machine learning to help deliver financial results over the next three years.

But the enthusiasm around the potential of GenAI goes way beyond the finance sector. A study from Accenture of nearly 5,000 senior executives across the globe earlier this year, When atoms meet bits: the foundations of our new reality, revealed that 98% of senior executives believe AI will spark significant creativity and innovation, and 95% said it will usher in a new era of enterprise intelligence.

When the study results were announced in March, Paul Daugherty, group chief executive at Accenture Technology, said IT leaders need to act fast if they are to achieve what generative AI promises: “While generative AI will have a far-reaching impact, leaders must dive in now to achieve its full promise, as it will require significant investments in data, people and customising foundation models to meet organisations’ unique needs.”

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