How AI FinTech Impacts the Financial Labor Market

People working in fintech and the broader financial services sector will tell you. AI is neither a threat nor a novelty for industry jobs. Introduced in the 1980s, the first “expert systems” have been used to predict market trends and develop personalized financial strategies for a long time.

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The Numbers of Artificial Intelligence

In 2020, a global study on Artificial Intelligence in financial services already confirmed it. 85% of all respondents in the survey already used some form of AI to get deeper data-based insights. A necessity to increase their speed and efficiency, thus improving service quality.

The study also revealed that by 2022, 77% of participants expected Aritficial Intelligence to have a greater overall significance for their business. 64% of respondents expected to be “mass adopters” of Aritficial Intelligence by then, compared to only 16% in 2020. They will use it to generate revenue, automate processes, and improve risk management, customer service, and customer acquisition.

It’s now 2023, and the situation has become clearer. The rise of generative AI has sent shockwaves worldwide across many sectors. A revolution that has already created 133 million jobs globally. According to a McKinsey report, the adoption of Aritficial Intelligence in all its forms has more than doubled since 2017 in the industrial context, now ranging between 50 and 60%.

Size of the AI-Related Job Market

For players in fintech, DeFi, cryptography, and neo-banks, AI is set to replace certain low-skilled or non-valorized tasks. However, it will facilitate other more crucial jobs for the company’s sustainability. This is also true for the more traditional financial services sector.

A recent study conducted by MarketResearch.biz revealed that the global market size for artificial intelligence in financial services is expected to quickly rise to 1.5 billion euros.

Generative AI in this sector is indeed expected to reach around 9,475.2 million dollars by 2032. This represents a significant increase from the 847.2 million dollars of 2022. Thus, the market is expected to experience a compound annual growth rate (CAGR) of 28.1% between 2023 and 2032.

Potential of Jobs Related to Generative AI

Indeed, financial institutions now recognize the potential of generative AI. And the underlying technologies are now much more valued. The development of advanced “machine learning” (ML) algorithms, such as deep learning and reinforcement learning, now allows training models on massive datasets, enabling very accurate predictions.

From detection to fraud prevention, from customizing customer experiences (e.g., using chatbots and virtual assistants) to risk assessment, the fields of application for generative AI technology seem boundless. It can participate in creating trading and investment strategies or develop models in cybersecurity and risk management.

And that’s not all! Generative AI can also be used to assist in loan approvals, mortgages, and fraud detection, among other things. It’s no surprise that financial institutions are now leveraging these capabilities to maximize their efficiency, accuracy, and results. Costs can be reduced through automation. Indeed, it helps streamline operations and allocate resources more efficiently. This translates into savings for financial institutions.

The Future of Your Job

But what does this mean for employment, practically? The most evident changes will appear in the form of a massive supply of jobs in the fields of AI and ML. Indeed, according to the World Economic Forum’s Future of Jobs 2023 report, AI and machine learning specialists are among the fastest-growing jobs this year.

Customer service roles in financial services are also likely to be affected. AI-driven chatbots can perform many of the same functions. However, data scientists will not be replaced by AI. Indeed, interpreting analytical data requires critical thinking and communication skills. Non-technical skills that only humans can provide so far. Time-consuming and redundant tasks will be automated. This will free up more time to work on predictive modeling techniques.

AI and Cybersecurity

Cybersecurity professionals should also expect changes. Traditional tools powered by AI can indeed improve accuracy in detecting and identifying real-time attacks. They can automate the incident response process and help experts identify new threats and emerging trends, so that measures can be taken.

New jobs will also emerge. One already gaining ground is prompt engineering. Working with content creators, data scientists develop and refine their ChatGPT Prompt Engineering for Developers courses to equip software developers with the necessary tools to work in this field. This is to better meet the needs of clients and users.

In this field, annual salaries in the US start at $230,000 and go up to $335,000. So, in the context of your own career, you now know that tackling the challenges and opportunities of generative AI will allow you to make data-driven decisions, increase your efficiency, and most importantly, stay ahead in a dynamic financial landscape. Discover thousands of job offers in the sector on the Journal Du Coin Jobboard.

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(Featured image by This is Engineering via Pexels)

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First published in Journal du Coin. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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