Artificial Intelligence Will Replace Jobs in Banking?

In the last 12 months, the banking industry is very excited about Artificial Intelligence. Every leading consultancy has published research on influencing AI and investments continue to develop new solutions. But, the inevitable concern is that all the buzz along with this technology will reduce the need for actual human laborers.

Handling a Mechanism Made, No Need of Humans:

The concept here is very simple. If a bank can handle a mechanism automatically then they do not need a man to do it. Although such arguments are not entirely false, the answer is not easy. In the last decade, the digitization of consumer services led to the reduction of the housing. This made banks shut down the next few branches. Similarly, one of the major areas where banks are implementing new AI solutions is customer services.

Virtual Assistant Amazon Alexa:

Many companies have developed Artificial Intelligence-based chat boats and virtual assistants. J.P. Morgan users use AI to answer customer questions and can predict their future needs, based on UBS’s Virtual Assistant “Amazon Alexa”. These products are more likely to replace jobs. The more they use these products, they will learn more. It means that consumers can enhance their ability to help costumers without the need for human intervention.

Unlike chatbots and Robotic Process Automation (RPA), customer information is automated simple administrative processes. It is not the significant threat to their employees’ jobs, as banks now use AI. Many top-level banks have the priority to use AI systems to detect fraudulent activities or cash transfers. This was particularly successful, and dramatically reduce the time spent by investigators for erroneous positive results.

In these cases, AI-based systems have now reduced stress on researchers rather than reducing the human input requirement. They allocate time to investigate each case in more detail. Otherwise, it is very different from one of the areas where banks are interested in AI.

Algorithmic Trading:

Some are focusing on the use of technology in algorithmic trading, while others develop solutions that provide products to each customer based on their own conditions. These projects are still under development and are still widely expanded. Another fundamental attitude to these organizations uses technology to improve their appetite, while media discussions of the AI in banking have focused on how banks use the money by reducing jobs. The Risk is the center of the banking industry. So many employees measure their customers.

Current technologies can not make decisions as human beings do, but can only sort the AI’s application process. The information analyzed by the AI reduces human bias in the process of making decisions and increases the outcome for both companies and consumers without the elimination of the workers from this process. The application of the AI to other banks is like the other industries, eventually reducing the need for human intervention. However, the banking industry does not say that a huge number of jobs lost, leading to a rebellion.

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About the Author: Jaya Nandini

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