Almost half of workload forecast could be automated
Bank workers are forecast to be among those most affected by change driven by increased adoption of artificial intelligence, a recent report by Faethm by Pearson shows.
Research conducted by the predictive workforce analytics company earlier this year identified that over 1.3 million Australians (close to 10% of the workforce) could lose their jobs by 2027, as advances in artificial intelligence speed up automation. It found that bank workers faced the biggest risk, with 46% of their workload forecast to be automated.
Commissioned by tech firm ServiceNow, the research identified the tasks involved in 6,000 job types, using machine learning to estimate which were the most predisposed to automation. The report forecasts are based on a scenario where people are not retrained or reskilled.
Customers’ growing preference toward digital communication has prompted branch closures across the banking industry.
A spokesperson for the Australian Banking Association (ABA) said that banks were undergoing a “customer-led digital transformation”, confirming to MPA that 98.9% of all customer interactions with banks were now taking place online or via digital apps.
Speaking to MPA about the research, Faethm by Pearson vice president of AI and data science Richard George (pictured above) said that while the number of workers whose jobs could potentially be impacted was significant, automation did not have to lead to job losses.
As observed through time, the nature of jobs constantly changes, he said. People need to keep reskilling and keep up with new technologies and be able to use those new technologies in their job.
“What I’d like to think is that the government, companies and individuals will start helping employees find that next job, upskill or reskill into the job they currently have, so that they can keep up with the constant change,” George said.
Banking sector tops list for AI-driven change
In response to why bank workers were identified as more at risk of AI-induced change compared to other sectors, George said that the research models it used were designed based on employees performing a set of tasks.
Where those tasks could be described as robotic, the idea is that a robot could perform the task faster and remove these routine jobs from the human workforce, he said.
On the positive side, there was an opportunity for employees to work creatively and strategically, but on the downside, there may also be less need for this type of work.
George said companies would need to think what roles they needed and the right skills to complete those roles, while employees would need to be aware of the changes and that the pattern of work they were used to might change.
“[Employees] have to have that change mindset to allow them to be more agile in their work and do new things,” George said.
Banking roles that could become redundant
George said that artificial intelligence was more likely to impact data-driven roles, where companies see an opportunity to adopt technology to replace tasks.
Noting that financial institutions tend to have a greater focus on cost, George said that if there was an opportunity to cheaply bring on new technologies, it was likely that economies of scale within the industry would require them to do so.
While cost savings were a likely driver of an increase in the adoption rate of artificial intelligence within the sector, George agreed with the view that employees who had a lot of contact with customers were likely to retain that human element in their role.
“If it’s more transactional and you’re sitting at a call centre and responding in the same language and with the same questions, that type of routine task is still up for automation – particularly now with the ability of chatbots to understand and respond to queries,” George said.
Robotic process automation is likely to have the biggest impact on the financial industry, he said, noting that in many cases, it would simply be software replacing a routine task. But there is also evidence that the technology still has a way to go, particularly where there is some complexity, which George said is where machine learning AI is now helping.
“Robotic process automation is now bringing in these new advanced machine learning technologies which will push it further in what it can do,” he said.
George pointed to other positive impacts of an increase in the adoption of AI within the banking industry including fewer human errors such as miscalculations, removal of some types of fraud, and as in other industries, removal of human bias in recruitment processes.
Majority of customer interactions now electronic - Australian Banking Association
A spokesperson for the ABA confirmed that 98.9% of all customer interactions with banks were now taking place online or via digital apps.
“Banks are following their customers, with an eight-fold increase in technology investment since 2005, up from $3.5 billion to $28.5 billion,” the spokesperson said.
In response to questions about the role of AI in the banking industry, the ABA said that as the digital transition continued, banks would continue to develop the digital skills of their employees.
“AI presents opportunities for innovation and improved service experience for customers as they make the ongoing shift to digital, particularly in regard to convenience and keeping customers safe from scams,” the spokesperson said.
What advantages or disadvantages do you think that artificial intelligence will bring to the banking industry, namely the transactions affecting mortgage brokers? Share your thoughts in the comments section below.
