Friend or foe: The financial services executives’ views on generative AI

According to a recent study conducted by FintechOS, as much as 73% of executives from the financial services sector believe that they will eventually be replaced by generative AI.

Is AI a friend or foe?

The study, titled “Generative Artificial Intelligence: The Technology Polarising the Financial Services Industry” shows that there is a fairly even split between those who see the development of Generative AI (GAI) as positive and those who view it as negative.

Around 45% of respondents noted that they view the emerging technology as a “friend” that will help with conducting everyday business, while around 40% view it as a “foe”.

There is a similar split when it comes to the money invested in generative AI technology. The report says that 50% is already investing in it, with the average sum in the UK being between £800 and £1.6 million.

Meanwhile, there is a significantly wider consensus in terms of expectations that GAI will end up reshaping the workforce and displacing jobs. These concerns have been around for years, but they became more widespread than ever during the past year, since the release of ChatGPT, and other similar AI products.

The survey has found that 57% of people who participated expect that generative AI will lead to job losses in the next three years. Participants also believe that the average headcount reduction will be at around 30%, meaning that businesses are expected to cut one third of their workforce moving forward due to the fact that advanced AI can perform the workers’ jobs.

Businesses had to jump on AI or risk being left behind

Teodor Blidarus, the co-founder and CEO of FintechOS, commented on the findings, stating that the opinions in the financial services industry are deeply divided. But, even with that being the case, there is one common consensus: the majority expects that generative AI will be able to boost revenue, but also reshape the workforce and leave people without a job.

Meanwhile, financial institutions have jumped on AI technology as soon as it was proven to be competent enough to be used in the business context. Blidarus noted that it was — and still is — imperative for them to do so, otherwise they risk being left behind. These days, not trying to integrate AI is a bad sign among investors, and even users.

As a result, companies have to start their AI journey now, no matter how small a step they make, just to stay competitive. However, he also believes that understanding the implications of making such a move can help mitigate the risks of GAI, and allow them to better reap potential rewards.