When artificial intelligence first entered the public eye, the fear was that it would completely eradicate the need for low-level workers.
In other words, any workers that weren’t in managerial positions were at risk. But now that more people are beginning to understand AI, it seems like it’s the middle-management jobs that are the ones being competed against.
This is especially true in the financial industry, where brokers or ‘go-betweens’ are experiencing more difficulty than ever convincing people to use their services. Once upon a time, if someone was to make an investment in the capital market, they would need to talk to a broker, banker, asset manager, and even a financial advisor to ensure that they are making the right decisions. This is still the case now, of course, but unlike “once upon a time”, there is now a viable alternative option.
The Use Of AI In The Financial Industry
In 2023, growing AI capabilities have allowed would-be investors to find new routes to the market. This is down to investment experts who are pushing for a more open playing field. Fintech company FINQ’S disruptive approach is led from the front by their CEO – Meet Eldad Tamir: the visionary founder behind FINQ’s disruptive approach.
For a long time, he was disappointed in the old-fashioned investment system, which seemed to only favour investors with more financial reserves to start with, as well as middle men who would focus on maximising their own profit. To throw a curveball into the industry, Tamir has built a system that is entirely unbiased, and transparent and uses AI-driven data to analyse the market and aid investors in making their decisions.
The exciting thing about this is that it opens the financial market to everyone – you don’t need to have a big sum or a wealth of expert middle men to make an impact, you can become a smart investor entirely through an AI engine. Great news for new investors. Not so great news for middle men.
Are Middle Men Being Left Behind?
This isn’t necessarily about ‘leaving behind’ middle men. There are ways for intermediaries in the financial industry – and indeed any industry – to remain relevant and find their place in the new AI era. But the point is that they need to discover a new avenue for success.
When it comes to the financial industry, it’s entirely plausible that they could be left behind. The thing about AI is that it only gets better. Right now, it’s possible to analyse a huge amount of data, compile analyst sentiments, monitor internet traffic, and then break it all down into basic assets with clear value and risks.
If you think this sounds good, it sounds even better when you realise that AI is continually learning, which means the data pool will only get larger, with a more refined ability to identify patterns and offer solutions. For advisors, brokers, bankers, and more, this kind of technology could be a significant warning sign that things have to change, and they need to find new avenues to remain relevant and needed in the industry as a whole.