Robots are coming for Wall Street: AI threatening top finance jobs
Robots are coming for Wall Street: AI threatening top finance jobs
7 Dec, 2019 10:34 / Updated 1 month ago
The rise of
machine learning is set to reshape the workforce in the financial sector and
could disrupt not only routine jobs, but also hit some of the highest paying
ones.
The warning was voiced by Dr. Marcos Lopez de Prado, professor at
Cornell University’s School of Engineering, as he testified before the US House
Committee on Financial Services on Friday, at a hearing to determine the impact
of artificial intelligence (AI) on сapital markets.
The professor said that, while tech firms started distributing
data and crowdsourcing the jobs of data analysts through special tournaments,
any investment challenge could be solved by an army of data scientists without
financial background. Thus “the
highest paying jobs in finance” could be put at risk, he
noted, adding that asset managers could crowdsource their entire research
function, while insurance companies could do the same with their actuarial
models.
“Financial ML [machine learning] creates a number of challenges
for the 6.14 million people employed in the finance and insurance industry,
many of whom will lose their jobs - not necessarily because they are replaced
by machines, but because they are not trained to work alongside algorithms,” Lopez
de Prado told the сommittee.
While some of other witnesses also voiced concerns on how
automated markets are reshaping the workforce, other invited specialists in
investment and finance believe that AI could unlock many opportunities. One
thing is clear, while the sphere is going to change, the question is if people
are ready for it.
Rebecca Fender, Senior Director of the Future of Finance at the
CFA Institute, an association of investment professionals, told the members of
the task force that 43 percent of CFA members and candidates expect significant
change in their roles in the next 5-10 years. The three roles “most likely to disappear” are
sales agents, traders and performance analysts, she said, citing the result of
a survey of more than 3,800 respondents.
Meanwhile, Kirsten Wegner, CEO of Modern Markets Initiative, said
that policymakers are better to encourage the transformation to automatization,
instead of impeding it, as it opens the door to many tech professionals.
“There are countless job opportunities popping up in coding,
cybersecurity, data storage and management, quantitative reasoning and other
technology verticals that Wall Street plans to prioritize,” she
said, adding that employment opportunities could stem from blockchain,
e-banking, robo-advising and new cryptocurrencies.
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