Approximately 31% of the respondents state that their company is already using AI; nearly another 40% report that pilot projects for the use of AI are already underway. “AI has already arrived in the financial world,” comments Professor Volker Brühl, Managing Director of the Center for Financial Studies. Around 59% and 21% of the panel participants believe that AI will change the financial industry significantly or very significantly in the next 5 years. “AI will play a major role in shaping the financial industry over the next few years. The regulatory authorities must also prepare for this,” says Brühl.
How much do you think AI will change the financial industry in the next 5 years?
Legislation to regulate AI in the EU has already been drafted (the “AI Act”). It divides AI applications into different risk classes. Around 83% of the survey respondents consider regulation of AI applications to be fundamentally necessary.
However, there is no consensus on whether AI will cost jobs or rather lead to new job creation. Around 53% tend to believe that AI will eliminate jobs. Roughly 44% take an opposing view.
Do you see AI endangering jobs in the financial industry?
The results are based on a quarterly management survey in the German financial sector.
The Center for Financial Studies (CFS) conducts independent and internationally-oriented research in important areas of Financial and Monetary Economics, ranging from Monetary Policy and Financial Stability, Household Finance and Retail Banking to Corporate Finance and Financial Markets. The CFS is also a contributor to policy debates and policy analyses, building upon relevant findings in its research areas. In providing a platform for research and policy advice, the CFS relies on its international network among academics, the financial industry and central banks in Europe and beyond.
More on the current CFS Index:
CFS Index at unchanged level
Source: Press Release CFS as of 11 May 2023