FORMER CITI CEO PANDIT SAYS AI WILL REPLACE 30 PERCENT OF BANKING JOBS WITHIN 5 YEARS | WHAT REALLY HAPPENED


FORMER CITI CEO PANDIT SAYS AI WILL REPLACE 30 PERCENT OF BANKING JOBS WITHIN 5 YEARS

Banks have already started to roll out automated systems.

While Vikram Pandit’s prediction is bad news for back-office employees, banks have already begun to use AI and machine learning in a big way.

From stock picking quants such as those currently under development by iBankCoin (to be rolled out in Exodus), to “robo-advisors” which handle client portfolios deemed too small to justify a costly human broker, to high frequency trading (HFT) algos, to intelligent fraud detection systems which detect and adapt to fraudulent behavior – banks are becoming increasingly reliant on automated systems.

JPMorgan ($JPM) Chase invested $600 million in 2016 for “emerging fintech solutions,” and have been integrating automation wherever possible. The bank is gunning for legal jobs with their “Contract Intelligence” platform (COiN) which “analyze(s) legal documents and extract important data points and clauses.” According to Techmergence.com, manually reviewing 12,000 annual credit agreements requires approximately 360,000 hours. With COiN, the same agreements are able to be reviewed in seconds. How is a recent law school grad with $150k in debt supposed to compete?

Webmaster's Commentary: 

The short answer is, the recent law school grad with $150,000 in debt cannot compete.

College counselors need to be looking at future job trends for at least 20 years into the future, in terms of guiding students toward careers that will actually exist when they graduate, and that is just the hard truth.

Comments

SHARE THIS ARTICLE WITH YOUR SOCIAL MEDIA