Generative AI and a Financial Takeover: Friend or Foe?

<p><span>In a
not-so-shocking revelation, a whopping 73% of banking and insurance executives are
donning their pessimism hats, foreseeing their eventual replacement by the
ever-looming Generative AI. </span></p><p><span><br></span></p><p><span>Generative AI (GAI) refers to </span><a href="https://www.financemagnates.com/tag/ai/" target="_blank" rel="follow">Artificial</a><span><a href="https://www.financemagnates.com/tag/ai/" target="_blank" rel="follow">&nbsp;Intelligence</a> (AI) that can create a wide variety of data. If that sounds vague, it is. That's because GAI can create an awful lot of things, from text to images, to video and more. That means that execs working in analysis, <a href="https://www.financemagnates.com/tag/crypto/" target="_blank" rel="follow">crypto</a>, <a href="https://www.financemagnates.com/tag/prop-trading/" target="_blank" rel="follow">prop trading</a>, FX and more are all looking over their shoulders.</span><br></p>
<p>&nbsp;<br></p>
<p>FintechOS has
published a riveting, and doom mongering, study titled <a href="https://info.fintechos.com/gai-report-fintechos" target="_blank" rel="nofollow">'Generative Artificial
Intelligence: The Technology Polarising the Financial Services Industry.'</a></p>
<p>&nbsp;<br></p>
<h1>A Love-Hate
Affair</h1>
<p>While the
air is thick with existential angst, the study reveals an intriguing seesaw of
emotions. 45% of respondents consider GAI a trusty 'friend,' while a slightly
more skeptical 40% label it a 'foe.' In this coming together of tech and talent,
things are pretty much split down the middle.</p>
<blockquote><p lang="en" dir="ltr">73% of UK insurance execs expect generative AI to take their jobs: FintechOS.<a href="https://t.co/ZybxjJp1Dl">https://t.co/ZybxjJp1Dl</a></p>— Reinsurance News (@NewsReinsurance) <a href="https://twitter.com/NewsReinsurance/status/1727272506296545389?ref_src=twsrc%5Etfw">November 22, 2023</a></blockquote>
<p>As financial
moguls dip their toes into the GAI waters, the drama begins. 50% are already
investing in a robotic future, with the UK seeing £800,000 to £1.6 million as the
average AI investment made by financial firms. Spending, for sure, but not extravagantly.</p>
<p>&nbsp;<br></p>
<h2>An
Employment Apocalypse or Renaissance? </h2>
<p>57% of
respondents to FintechOS’s questions predict job losses within the next three
years, seeing an impending headcount reduction averaging 30%. Teodor Blidarus,
the man behind FintechOS, forewarns, “Every financial institution has started
its GAI journey. Only by starting the journey now can we mitigate the risks and
reap the rewards." As financial leaders brace for the AI storm, the melody
of uncertainty plays on.</p>
<p>&nbsp;<br></p>
<h2>With
Altman's Return, a GAI Overture Unfolds</h2>
<p>Coinciding
with this financial melodrama, OpenAI's Sam Altman, a virtuoso in the AI realm,
has returned to take back the reins.</p>
<p>&nbsp;<br></p>
<p>73% of
financial execs expect GenAI takeover. Study reveals a love-hate relationship
with AI. 50% investing in GAI, UK spends millions. 57% foresee job losses with
GAI rise. Altman's return adds drama to the AI opera.</p><script async charset="utf-8" src="https://platform.twitter.com/widgets.js"></script>

This article was written by Louis Parks at www.financemagnates.com.