Artificial intelligence (AI) is predicted to add £35bn to the financial and professional services sector over the next five years, a new report by the Corporation and KPMG has revealed.
Financial and professional services: the future of AI and the workforce report measures the impact the rise of AI will have on the financial and professional services sector.
Across sub-sectors of financial services, including asset management and investment banking, £35bn is expected to be realised through upskilling workers’ AI proficiency in addition to further AI adoption in workstreams.
According to the report, the financial and professional services sectors could see significant productivity improvements by 2030 from adopting AI solutions. Under a maximum scenario, these gains could reach up to 50%, driven by enhanced productivity, new market opportunities, and product development.
The fintech sector is set to be hugely impacted by AI with already a 40% increase in demand in AI skills for jobs in this sector over the last three years.
Meanwhile, there has been a 76% increase in demand for AI skills in investment banking jobs since 2021. This is largely because this sub-sector has long been using machine learning and data science algorithms to support trading.
The Corporation and KPMG have also put together a framework that can be used to maximise the benefits of AI with suggestions including establishing clear ethical guidelines, providing training and support, encouraging collaboration and to monitor the implementation of AI and gather feedback.
The report shows that short-term cost savings through redundancy may hinder a firms’ real and long-term cost savings and financial gains. Instead, firms should ensure their AI strategy implementation aligns with the skills needed for that adoption, placing greater emphasis on internal training.
As a leader in AI adoption, the financial services and professional services sector can shape the direction of the UK workforce and ensure that is prepared for the challenges of tomorrow.
Chris Hayward, Policy Chairman at the Corporation, said:
“In recent months, there has been rapid exposure to AI and this has created immense debate about the broader good and potential risks to society. This report shows how, if adopted correctly, it can be used to boost Britain’s economy. This report is a vision of the UK workforce that is not only prepared for the challenges of tomorrow but poised to seize the opportunities of today.”
Mel Newton, Partner in KPMG UK’s Financial Services People Consulting Practice, said:
“AI and other technologies are developing so fast and will change many aspects of how financial services teams work. This report aims to help create a framework for companies to harness the full benefits of AI and upskill their teams to handle the complexities of a changing technological landscape, whilst also effectively addressing the risks that this entails.”
ENDS
Notes to editors
Read the full report here: https://www.theglobalcity.uk/insights/future-of-ai
The Corporation is the governing body of the Square Mile dedicated to a vibrant and thriving City, supporting a diverse and sustainable London within a globally-successful UK.
About KPMG UK:
KPMG LLP, a UK limited liability partnership, operates from 20 offices across the UK with approximately 18,000 partners and staff. The UK firm recorded a revenue of £2.96 billion in the year ended 30 September 2023.
KPMG is a global organisation of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 143 countries and territories with more than 273,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.
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