Over $1 trillion of today’s financial services cost structure could be replaced by machine learning and AI. This would affect 2.5 million employees in the US alone, according to a new study by Autonomous Research
The company is a global research firm focused on financial services. It just announced the publication of Augmented Finance and Machine Intelligence, an in-depth look at the way artificial intelligence is transforming the financial services industry.
This shift will impact operations across all functions and segments of the financial industry, from bank tellers to portfolio managers to insurance underwriters. By 2030, Autonomous expects $490 billion in costs to be exposed to AI in distribution, $350 billion in the middle office, and $200 billion in financial product manufacturing.
The firm’s analysis includes a primer explaining how AI works and what is driving developments like chatbots and conversational interfaces. It provides specific examples of technology, catalogues the industry’s top players, and shows the strategic potential of this software in the future.
“To create AI-augmented finance, firms must embrace machine learning and build talent and capability now,” said Lex Sokolin, Director of Fintech Strategy at Autonomous Research.
“This is a generational trillion-dollar opportunity. Our analysis provides what you need to know to make informed strategic decisions.”