According to the latest report published by PwC entitled Financial Services Technology 2020 and Beyond: Embracing Disruption, technological advancements in the field of artificial intelligence and robotics is expected to make some major changes in a number of areas in the capital markets as well as the financial services industry.
The report indicates that they are already seeing collaborations forming between top financial services in the market and fintech companies that are employing robotics and artificial intelligence in order to provide solutions to major challenges and decrease the costs at the same time lower the risks present.
Researchers continue to find the potential of robotics in cognitive and interactive aspects. The rapid advancement gives hope that this piece of technology will be the gateway that will lead to accomplishing more tasks even the most complex ones. Currently, ATMs are the simplest form of robotics technology with a singular purpose but, according to PwC, the time is near for it to advance into something more with the help of robotic process automation. This is one step in order to pave the path for digital operations in the financial services industry.
Another prediction made PwC is the replacement of majority of human workers with AI and robotics due to the increasing labor costs when offshoring. This is the time when re-shoring will become popular because there are already better alternatives on-shore which can complete the tasks. These new changes will also impact tasks that used to depend on human inputs including underwriting, product design and fraud prevention.
As of writing, the report already indicated that AI is a vital aspect in high-speed trading and capital markets but as it improves it is possible for it to be the heart of the design process especially in the field of trading authorizations and in dealing with human investors.
The report added that by 2020 we will see more automation with underwriting functions through artificial intelligence and Nadeem Shaikh Anthemis believes that it will start with mature markets since the data is already available to be used. It might be possible that AI cannot completely take on the underwriting task but humans will be able to concentrate on other more important areas because of greater automation.