Despite claims of generative AI being a fad, it could automate 54% of banking jobs — OpenAI’s GPT-4 already outperformed seasoned analysts in predicting financial trends
54% of jobs in the banking sector could be automated using AI, according to a new study.
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What you need to know
We might be on the verge ofthe biggest technology revolution with AI, though there are several factors likelack of adequate power,finances, andwaterto push it to the next level. While it remainsdebatable if AI is a fad, the technology is being widely adopted.
As we speak,generative AIis alreadyclaiming jobsacross various sectors, including the built environment.Microsoft CopilotandChatGPTare great atgenerating detailed structural designs within seconds. But where does this leave the need for architects and interior designers in the job market? Interestingly, these AI-powered chatbots can generate sophisticated structural designs butfail at simple tasks like creating a plain white image.
Be it as it may, the AI revolution is on course. According toa new study by Citigroup, the banking sector got next on AI’s chopping board. The study further indicates that 54% of banking jobs (more than half) have a high affinity for automation. What’s more, 12% could be augmented by AI.
According to Citigroup:
“GPTs have the potential to transform entire economies, changing the way we live and work. They create new opportunities for growth and innovation, often improving our overall quality of life. They also destroy existing ways of doing things. And as such they also create losers. Especially in the short term.”
The banking sector isn’t the only one at risk with the prevalence of AI. The cutting-edge technology might claim jobs across the Insurance, Energy, and Capital sectors.
Interestingly,Microsoft’s latest Work Trend Index reportclaims AI generates more job opportunities rather than losses, with company leads expressing concern over insufficient talent to fill vacancies. However, most recruiters won’t hire anyone without an AI aptitude, prompting “a 142x increase in LinkedIn members adding AI skills like Copilot and ChatGPT to their profiles.”
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The next wave for AI, but is security and privacy guaranteed
NVIDIA CEO Jensen Huang claims we might be on the verge ofthe next wave of AI. Huang says advancements in the AI landscape are well beyond chatbots. The next wave will champion humanoid robots and self-driving cars.
In a separate interview, the CEO discouraged the next generation from exploring coding as a career option. He addedit might be dead in the water with the prevalence of AI, and that they are better off exploring opportunities in other fields, including biology, education, manufacturing, or farming. Huang might be onto something with the emergence of ‘magical’ flagship models likeOpenAI’s GPT-4o, which isexceptionally great at writing and detecting errors in code.
Similarly, OpenAI’s GPT-4 (also referred to as mildly embarrassing at best and kind of sucks) was recently spottedoutperforming professional analysts and advanced AI models in forecasting future earnings trends.
Upskilling in AI seems like a fireproof way to assert job security. However, what will happen whenAI becomes smarter than humans? While we ponder the possible outcomes, will you be comfortable letting AI handle or access your bank records and finances amid security and privacy concerns?
According to Citigroup’s CTO, David Griffiths:
“The pace of adoption and impact of Gen AI across industries has been astounding as it becomes clear that it has the potential to revolutionize the banking industry and improve profitability.”
The adoption of AI in the banking sector will grow its profit margin by 9%, which translates to $170 billion. The study says this will push the profits from $1.7 trillion to a cool $2 trillion.
Windows Recallis perhaps Microsoft’s most controversial feature yet. Though the company promised 100% privacy-focused, users didn’t seem to buy that running on-device onthe new Copilot+ PCsis enough to keep their confidential data away from prying eyes and bad actors.
Privacy and security concerns raised by users attracted attention from the UK data watchdog,prompting Microsoft to recall Windows Recalltoaddress some critical issues.
While Citigroup’s report doesn’t categorically state that AI will take over or handle tasks that involve accessing personal banking credentials, it sparks the thought that we might potentially get to this stage.
Kevin Okemwa is a seasoned tech journalist based in Nairobi, Kenya with lots of experience covering the latest trends and developments in the industry at Windows Central. With a passion for innovation and a keen eye for detail, he has written for leading publications such as OnMSFT, MakeUseOf, and Windows Report, providing insightful analysis and breaking news on everything revolving around the Microsoft ecosystem. You’ll also catch him occasionally contributing at iMore about Apple and AI. While AFK and not busy following the ever-emerging trends in tech, you can find him exploring the world or listening to music.
