Artificial intelligence threatens financial jobs on Wall Street

The rise of machine learning is poised to reshape the workforce in the financial industry and could not only disrupt routine jobs, but also affect some of the highest paying.

The warning was issued by Dr. Marcos Lopez de Prado, a professor in the Faculty of Engineering at Cornell University, during testimony before the U.S. Financial Services Committee on Friday, in a hearing to determine the impact of artificial intelligence (AI) on capital markets. .

The professor said that as tech companies begin to distribute data and outsource data analyst jobs through special tournaments, any investment challenge could be solved by an army of data scientists with no financial training.

Thus, “the highest paying jobs in finance” could be threatened, he noted, adding that asset managers could outsource their entire research function, while insurance companies could do so. the same with their actuarial models.

“Financial ML [machine learning] creates a number of challenges for the 6.14 million people employed in the finance and insurance industry, many of whom will lose their jobs – not necessarily because they are replaced by machines, but because they are not not trained to work with algorithms, ”Lopez de Prado told the committee.

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While some other witnesses have also expressed concerns about how automated markets are reshaping the workforce, other visiting investment and finance specialists believe that AI could open up many opportunities. One thing is clear, as the sphere changes, the question is whether people are ready for it.

Rebecca Fender, senior director of the future of finance at the CFA Institute, an association of investment professionals, told task force members that 43% of CFA members and applicants expect significant changes in their roles over the next 5-10 years.

The three roles “most likely to disappear” are sales agents, traders and performance analysts, she said, citing the result of a survey of more than 3,800 respondents.

The rise of machine learning is poised to reshape the workforce in the financial industry and could not only disrupt routine jobs, but also affect some of the highest paying.

Meanwhile, Kirsten Wegner, CEO of Modern Markets Initiative, said policymakers are better off encouraging the transformation to automation, rather than hampering it, as it opens the door for many tech professionals. .

“There are countless job opportunities in coding, cybersecurity, data storage and management, quantitative reasoning, and other tech verticals that Wall Street plans to prioritize,” he said. she said, adding that job opportunities could come from blockchain, online banking, robots. advice and new crypto-currencies.

RT with additional entry by GVS News Desk.



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