DURBAN – The continuous interaction and integration of data, algorithms and use cases are pushing the development of Artificial Intelligence.
AI has cut positions, broken human efficiency, cut down on standardised and repetitive work, transformed the nature of work and promoted work efficiency while also creating new jobs.
AI technology will change the business sector in three aspects: automation, intelligence and creation. In the financial sector, it will result in some jobs becoming redundant, while at the same time increasing efficiency and creating jobs.
1. Opportunities and challenges in the new wave of AI
In the new wave of AI, opportunities and challenges co-exist. On the positive side, AI could expand automation, support intelligent analysis and decision-making, and develop new business models and industries. But AI also carries an array of risks.
In regards to the financial industry, some potential risks include micro-financial risk and macro-financial risk. The former could impact the stability of markets, causing turmoil. The latter could trigger risk around market concentration, market loopholes, connection and technology.
2. Rebuilding the financial industry value chain: automation, intelligence and innovation
Deep learning and the spread of big data have stimulated the new wave of AI, which has resulted in breakthroughs in many application-layer technologies, essentially transforming the business world.
This transformation could be defined by three aspects: growing automation, supporting intelligent analysis and decision-making, and creating new business models and industries.
As AI technology has developed, it has been applied to the financial industry and has gradually grown. It has forced changes in banking, insurance and capital markets.
3. Restructuring the financial labour market: replacement, improvement and creation
Based on the applications of AI in the different business value chains of the financial sector, we see three big impacts that AI is having on the financial job market. These include job cuts, increased efficiency and job creation. Of these three areas, job cuts and increased efficiency will have an imoact on current positions, while job creation reflects the increasing potential effect of AI on the job market.
4. Changes in employment structure in the AI era
Changes in employment demand and talent needs in the AI ago have been more apparent in developed countries and leading companies.
While, demand has continued to increase for professional service talent, particularly on communications, logic and creation, and technical talent dealing with computer technologies.
Currently, AI technology in China is still in an introductory stage, so changes in employment demand in the AI field are limited, and are mainly mirrored in a demand for basic technical talent. From a recruitment view, companies are placing greater significance on technical skills, particularly ability in basic AI.
AI is slowing taking over manual labour in repetitive, highly standardised job activities that can be done using computer software. Therefore demand for these positions has been in decline. However, there are some positions that will not be replaced by AI over the next decade.
Although the onset of the AI age creates a “struggle” between humans and machines and replaces jobs, it also creates opportunities for new talents who can create, apply and optimize AI technologies. It needs workers with strong communications abilities who can use their high-level technical achievements in production and daily life.