An estimated $1 trillion in today’s financial services cost structure could be replaced by AI and machine learning by 2030, according to a publication by Autonomous Research entitled “Augmented Finance and Machine Intelligence”. Examining the ways AI could affect and transform the financial services industry, the report estimates that changes associated with AI may impact 2.5 million U.S. employees alone.
The full analysis explains the driving developments behind AI, the potential of the software in the future, specific technology examples, and a catalogue of key financial services industry players. It also covers how the shift towards AI impacts every segment and function in the industry, from insurance underwriters to bank tellers. When broken out AI is expected to affect $200 billion in costs relating financial product manufacturing, $350 billion in middle office, and $490 billion on distribution.
Autonomous Research’s director of fintech strategy, Lex Sokolin, stressed the need for firms within the industry to act now, saying that, “To create AI-augmented finance, firms must embrace machine learning and build talent and capability now. This is a generational trillion-dollar opportunity. Our analysis provides what you need to know to make informed strategic decisions.”
Autonomous Research stands as the leading independent research firm with a specialty in financial services in the US, Europe, and China. Since their founding in 2009, they’ve provided investment research on banks, brokers, insurance, payment-technology, and other related topics. Their Autonomous NEXT fintech strategy practice focuses on how technology impacts the future of finance.
