European Financial Leaders Says Gen AI Will Impact Substantial Productivity
European financial leaders have their critical observation on Gen AI and believe that it will impact substantial productivity. According to the EY European Financial Services AI Survey, Generative Artificial Intelligence technologies will affect productivity shortly. More than 77% of respondents said that Gen AI will have a significant impact on their workforce and operations.
EY European Survey Stats About the Impact of Gen AI on Workforce
The survey held in October 2023 stated the views of executives from 60 European financial institutions. The listed firms represent a market cap of £507.7bn. It includes the views of wealth managers, Channel Islands, lawyers, and administrators. The survey has got results that were shocking which says 68% of participants had their observation that one-fourth of all roles will need AI training. Moreover, the respondents said that the workforce will have to upskill themselves in the coming future.
- Yet, efforts to achieve enhanced productivity and workforce advancement via training and upskilling remain constrained.
- 35% of the respondents said they have no plan to upskill their workforce in a speedy evolving Gen AI technology.
- 42% of the respondents in the survey unveiled their plans “in their infancy”.
- Almost 12% of the leaders believed that the training is in place for multiple groups.
- Less than 2% of the participants addressed that their workforce is ready to equip themselves with the Gen AI (Artificial intelligence).
European Finance Leaders Aim to Increase Capital for Gen AI
The survey has come with the reported facts that finance has been allocated to Gen AI across the European financial sector. 60% of the respondents said that they have invested in the technology in the last 6 to 12 months.
Almost two-thirds of the participants in the survey said their companies have invested in the Gen AI technology. More than 75% of the respondents had their views that they have executive planning to increase the investment in the coming year.
“The private firms are planning at different levels to invest in the Gen AI, Leo Boessenkool, Partner and leader of EY’s CI Technology Risk team said in the survey. Everyone knows that Artificial Intelligence cannot be a bolt-on-strategy, instead of a completely integrated component of the firm’s planning.
The leaders of Channel Island are passionate about adopting the value that can bring clients and people. The survey emphasized the need for individuals to translate their passion for innovation into proactive initiatives, including strategic planning for workforce training in AI technologies and the establishment of robust governance frameworks to address potential risks.
Gen AI Will Impact on Graduate & Entry Level Roles for Sure
The impact of AI on entry-level and graduate talent is in focus for banks, insurers, and asset managers; 60% of executives surveyed expect new technologies to have a significant impact on the roles and tasks undertaken by those joining the workforce.
The impact of artificial intelligence will impact the entry-level, and graduate level roles in general. Organizations, like banks, asset managers, and insurers are more likely to face the impacts in particular. More than 60% of the executives surveyed
AI’s Impact on Entry-Level Talent:
60% of surveyed executives in banks, insurers, and asset managers anticipate a significant impact of new technologies on the roles and tasks of entry-level and graduate talent.
- To address this impact, 35% of executives plan to incorporate AI training into their graduate programs.
- A quarter (25%) are considering a broader restructuring of roles and responsibilities across entry-level positions.
- However, 28% of executives have not taken any action to mitigate potential knock-on impacts.
Top Attributes for GenAI Workforce Recruitment:
European financial services leaders identify the following as crucial attributes for recruiting entry-level talent in a GenAI-enabled workforce:
- Innovative and interdisciplinary mindset
- Tech-savvy and experimental approach
In-Demand Expertise for AI Integration:
Over the next two years, executives express a demand for specific expertise in the context of AI integration:
- Data science and innovation rank highest, with 45% of executive respondents choosing it as their top preference.
- Information and technology follow at 24%.
- Operations are mentioned by 14% of respondents as an area of demand expertise.
AI Knowledge, Regulations, and Ethics Are the Concerns of Leaders
During the survey, a question was raised about the concerns associated with the Gen AI integration. The European financial services leaders have less understanding of Gen AI applications and their outcomes across the workforce. It includes the uncertainty, pending regulatory impacts, and uncertainty. It will impact at least 7% ethically around Gen artificial intelligence.
Ethical Concerns Regarding GenAI:
Privacy is the primary ethical concern, cited by 32% of all respondents.
Transparency and explainability follow at 23%, alongside concerns about potential discrimination, bias, and lack of fairness.
Management of Ethical Implications:
18% of respondents have already implemented an AI ethics framework, while 30% are in the early stages of development.
However, 45% of respondents note that their firm has not yet established an AI ethics framework.
Accountability for AI Integration:
50% of respondents report that their firm’s technology team will handle the integration of AI across the business, reporting to the Chief Information Officer or an equivalent position.
38% of respondents mention that their firm is currently defining lines of accountability in the context of AI integration.