Presently, the role of technology has become prominent and functional in order to steer the wealth flow across different industries. According to economists, general purpose technology is expected to extend economic growth along with collective advancements with an aim to revolutionize the actions of corporations and households in a similar manner. We are not talking about just computers but high-end aptitude in the form of Artificial Intelligence, which has emerged as the superstar in this arena.
What do you understand by Artificial Intelligence or AI? It is referred to a specific area of computer science that is concerned with the creation of intelligent machines which operate just like humans. To be precise, the purpose of AI computers is to perform human tasks such as learning, planning, speech recognition and decision making.
AI and Global Revenue Generation
According to statistics, it has been analyzed that widespread implementation of AI across diverse industries is likely to motivate global revenues from $12.5 billion recorded in 2017 to $47 billion, as expected in 2020. Interestingly, the industries which would heavily invest in this technology are retail and banking, trailed by manufacturing and healthcare. Analysts suggest that over half the percentage of global AI revenues would be controlled by these four industries in the coming years.
Changes in Wealth Management Driven by AI
With everything turning positive around artificial intelligence and advancement with technology skills, the downfall for front office jobs turns out to be the other side of the coin. It has been negatively predicted about the dreadful impact of AI on asset management jobs. As per indicators, close to 90,000 jobs can be compromised that will include a major share of traders and portfolio managers. Looking at this situation from a wider perspective, we might experience almost all optional traders lose their employment source.
Moreover, apart from traders there are several other jobs that will face the cut. The radar also swings over traditional quant analysts who are known to use stochastic calculus as well as financial mathematics. Furthermore, the inclusion of hedge fund marketers together with relationship-based due-diligence professionals has raised concerns on the overpowering influence of artificial intelligence.
The world which exists today can turn more productive when machines and humans learn to co-exist in a balanced form. Wealth management can be stabilized without any additional job cuts if new technologies are allowed to develop under diligent monitoring and diminishing their adverse consequences. It should also be the responsibility of designers and developers to enhance human ability for understanding AI systems.