Artificial Intelligence Will Reduce Half of the Banking Workforce in Next Decade
Machines or AI automation will replace as many as half of the financial service providers, opined by James D’Arezzo, Glendale CEO.
However, he said that it will consume huge investment from banking owners.
“Unless banks deals with the performance issues that AI will cause for ultra large database, they will not be able to take the money gained by eliminating positions and spend it on the new services and products they will need in order to stay competitive,” said D’Arezzo.
Rigorous hardware updates might seem an obvious answer but he declared such an option expensive. Rather, he gave an example of a supercomputer which will perform artificial intelligence and big data application tasks.
The system is under development at Tokyo Institute of Technology Global Scientific and Computing Center.
Existing supercomputers cost $50 million to several hundred million dollars. This doesn’t support the fact that AI is helpful in cost reductions.
Banking executives are on the fearful side that they might lose their jobs in years to come.
Deutsche Bank CEO John Cryan predicted bonfire of banking jobs. He shared his views last year while speaking to an audience.
“In our banks we have people doing work like robots. Tomorrow we will have robots behaving like people. It doesn’t matter if we as a bank will participate in these changes or not, it is going to happen.”
The processing power of work has improved, cloud storage and other related developments were once thought complicated to be configured. And now they are part of the AI automation, he further suggested.
D’Arezzo company enhances the performance of the existing software and he believes there will be a tsunami of data. AI can cater to such huge datasets. The explosion of data will cause stress on the effectiveness of financial industry to process all data.