After the recent announcement that telecoms giant BT plans to replace 55,000 positions with AI by the end of the decade, business leaders gave their thoughts on the future impact of AI on the fintech industry.
To reduce costs, BT announced plans to reduce job roles over the next seven years. Philip Jasen, the CEO of BT, emphasised that the business wants to become a leader in AI technology and believes that while there are inevitable changes and restructuring planned, new technologies will create new opportunities, albeit within a smaller workforce by the end of the decade.
Due to emerging tech, particularly the rapid rise of the popular ChatGPT, AI has taken the main stage over the last year. Previously seen as something predominantly for tech businesses, AI’s real power is becoming more apparent and will likely transform the job market.
The emergence of AI within fintech has generated an interesting debate, with discussions favouring AI as a powerful tool and another side that regards the potential challenges. AI-driven algorithms and machine learning processes allow fintech businesses to automate repetitive tasks. By streamlining these types of operations, AI enables more time and resources for people to focus on critical tasks, significantly reducing hours spent on time-consuming activities.
AI-driven chatbots and VAs improve customer interactions by offering real-time support and personalised service. These AI solutions ensure constant availability and custom experiences. Through leveraging AI, fintech companies can improve customer relationships, resulting in improved trust, confidence and loyalty.
On the other side, as AI solutions continue evolving, there are some concerns about job displacement in the fintech industry. Activities once managed by humans could become automated, which has raised questions about the future roles of fintech professionals. For example, positions including data entry and customer support are more susceptible to automation and could require reskilling for selected employees.
Working with AI and not against it
While the concerns of job changes and possible unemployment are real, the benefits of AI are significant. Technology is transforming the fintech industry, and many industry leaders believe AI shouldn’t be viewed as a tool that replaces humans, but as an enhancer. For example, with FCA’s Consumer Duty expected in the coming months, AI could be a valuable resource for delivering new regulatory requirements in the fintech industry. Automating compliance, improving customer diligence, fraud detection and providing compliance training for employees are a few solutions AI offers to revolutionise fintech.
The potential of AI will enhance the work life of employees, freeing people from tedious, repetitive tasks. As a consequence, more time can go on value-added activities that require human input, innovation and creativity.
Industry leaders also emphasise that businesses aren’t reducing staff numbers and solely relying on new tech solutions. Similar to humans, AI requires people to manage, interact and work alongside it. Employees won’t be replaced with AI, but we must be prepared to use and collaborate with AI solutions. We will likely see more training and educational resources on how to work with AI over the next few years. As businesses continue incorporating AI into their services and operations, they will require more skilled professionals to develop, implement and manage AI systems.
Fintech employees have the opportunity to improve their skill sets in disciplines like data science, machine learning, AI ethics and customer relationship management to take full advantage of these new roles.
Other industry professionals, including Alister Sneddon, head of product at CMC Invest, share similar confidence in AI as an opportunity rather than a threat. Over the next few years, we will inevitably experience innovations with AI in fintech. For example, enabling companies to provide bespoke services and insights to improve the user experience. Investment platforms may apply AI to generate real-time alerts about ISA investments for their customers.
Sneddon also emphasises that the benefits of AI are clear, but personal understanding and tone are invaluable skills that enable connections to be built and generate trust and confidence. This relationship-building process holds significant value for people, especially when discussing matters like finance, and this is something AI cannot altogether replace.
