Financial services firms are increasingly investing in artificial intelligence (AI) technology, with over 95% of firms participating in a study by Broadridge indicating that they are actively incorporating AI into their operations. This includes integrating AI into customer service, research, data management, risk, fraud, and other areas of business. Senior leaders at these companies recognize the potential impact of AI and machine learning on their businesses and society as a whole, with experts projecting that generative AI applications could add up to $4.4 trillion in value to the global economy annually.
As part of their efforts to digitally transform their businesses, financial service firms are making AI a key component of their strategies. Despite the industry’s historically slow adoption of new technology, firms are now investing in digital transformation by modernizing their technology platforms, moving to the cloud, centralizing data, and making other upgrades. Once these upgrades are made, firms can effectively integrate innovative tools such as AI and machine learning. A survey found that 44% of digital leader financial service firms are making substantial investments in generative AI compared to non-leaders.
While many firms are making progress in building technology platforms to support AI, one critical area that is often overlooked is reskilling their workforce for the AI era. It is important to upskill employees across all areas of the organization, not just IT staff, to create GenAI experts and enable the seamless integration of AI into workflows. While 46% of companies have implemented reskilling plans to manage the impact of AI and 45% allow staff to use AI for general work purposes, only a quarter of companies are directly training staff on how to use AI tools.
Companies should focus on empowering employees to best utilize AI by educating them on how to apply AI to their jobs and maximize its benefits. AI and machine learning applications have the potential to automate routine tasks, freeing up employees to work directly with clients and focus on higher value-added activities. For example, AI-powered tools like LTX’s BondGPT+ can significantly reduce the time bond traders spend collecting and analyzing market information, allowing them to make decisions more efficiently. Companies need to work closely with professionals from all fields to determine how to best leverage AI tools.
As the rise of AI creates a greater demand for strong analytical and critical thinking skills, organizations are turning to large language models (LLMs) to improve decision-making and analysis. Companies must find ways to integrate these tools to empower staff and enhance business results, while also educating employees on the practical, legal, and ethical aspects of AI. By upskilling the workforce to thrive in an AI-driven environment, financial service firms and other companies can unleash the full benefits of AI technology for both organizations and employees.
