Washington: Experts in the technology and Finance sectors claimed that many jobs and employment opportunities, in the finance sector, have started disappearing because of the use of ‘Artificial Intelligence’ (AI) and the trend will continue. This claim was made in the Congressional hearing and Professor Marcos Prado warned that 6.1 million jobs in the finance, insurance and capital markets are under threat. Rebecca Fender expressed a fear that AI will challenge 40% of the professionals in the investment sector.
Use of AI and robotics is increasing by leaps and bounds, since the last few years and this issue has come on the anvil, in the industrially developed countries like the European countries, the United States, Japan and South Korea. It has been revealed that the leading multinational companies and banks have expedited the process to use AI. Leading international professionals and politicians have taken cognisance of the increasing use of this technology and have pointed out the possible consequences of its use. Various countries have started assessing the use of AI, the trends in technology and the potential progress. The Congressional hearing is considered to be a part of the same effort. Information regarding the effects of the use of AI, in the capital markets, was given during this hearing, in front of the ‘House Committee on Financial Services’ of the US Congress.
At this time, Carlos Prado, former chief of a company, operational in the Machine Learning sector and professor at the Cornell University, pointed out that the use of AI has already started in the capital markets. Prado claimed that this technology has already eaten thousands of jobs as ‘Executive Traders’. After that, Prado clarified the employments of professionals deciding the value and risks in the capital markets, have been taken over by the AI technology.
The Cornell University Professor also warned that Artificial Intelligence and Machine Learning technology, which is a part of AI, will pose a direct challenge to the employment of more than 6.1 million people from the finance sector. Rebecca Fender, director of the CFA Institute, an association of the professionals from capital, investments and finance sectors, also acknowledged the threat to jobs because of AI.
A survey was recently conducted on this issue and four thousand professionals had recorded their responses in the study. Fender drew attention that the jobs will reduce, pointing to the response of 43% of the professionals that they feared that they would have to change their jobs in the next 5 to 10 years. The director of the CFA institute pointed out that the designations like sales agents, traders, performance analysts will be having fewer jobs available.
Banks implementing AI technology have closed thousands of branches over the last few years and hundreds of thousands of employees have been sacked. At the beginning of this year, a British government report warned that there is a threat of 9 million people losing their jobs because of the advances and increasing use of AI technology. The hearing in front of the Congressional committee indicates that the trend will continue in the future.