Business & Finance Digital Technology

Artificial Intelligence set to bring billions by 2030

  • June 6, 2024
  • 2 min read
Artificial Intelligence set to bring billions by 2030

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 City of London 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 City of London 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.

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