In the modern age, AI is revolutionising the way we live our daily lives. From our digital assistants like Siri and Alexa to the autocorrect function on our text messages and emails, AI is becoming further and further incorporated into normality with every passing day. But despite AI’s increasing prevalence in society, the financial industry is against the introduction of AI into its sector due to a series of fears that reportedly outweigh the potential benefits AI could offer, such as productivity gains and cost cuts. Read on to learn more about the reasons behind the financial industry’s rejection of AI.
Job Loss Fears
The intention is for AI to be used as a productivity tool. There are a number of administrative or clerical tasks within the financial industry which can be simplified and made more efficient by the introduction of AI. However, the fear is that AI will actually go one step further and complete full job functions, making many existing workers redundant. On the one hand, this concern surrounding AI’s growing capability to take jobs is a massive barrier to AI’s incorporation into the financial industry. On the other hand, some would argue this attitude is the result of the general public’s lack of understanding around AI.
Regulatory Concerns
With AI still being so nascent and constantly evolving, financial industries would be required to navigate an uncharted regulatory environment if they were to introduce AI into their processes. Financial institutions operate under very strict compliance rules and regulations and must be careful to abide by these unwaveringly in all of their undertakings.
Institutional Inertia
The compulsion to resist change is tightly woven into the fabric of human society and has been for many hundreds of years. In the context of the financial industry, this largely stems from a hesitancy to fix what isn’t broken. For example, the industry fears that sensitive information could become compromised more easily through AI and is hesitant to risk this, especially given that these institutions already have tried and tested methods of keeping data secure.
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