AI in Fintech: A Threat or An Opportunity for Workers?
Following the news that BT, the telecoms giant, is looking to replace 55,000 positions with artificial intelligence (AI) by the close of the decade, we approached the fintech industry to gauge concerns regarding potential unemployment resulting from AI implementation.
Following the news that BT, the telecoms giant, is looking to replace 55,000 positions with artificial intelligence (AI) by the close of the decade, we approached the fintech industry to gauge concerns regarding potential unemployment resulting from AI implementation.
BT Will Use AI to Reduce the Workforce
With a motive to reduce expenses, BT recently disclosed plans to gradually reduce its workforce over the next seven years. The announcement made in May 2023 sent shockwaves throughout the organization, particularly among employees in the customer services division. The company declared its intention to terminate the employment of 40,000 to 55,000 individuals by 2030, replacing them with AI technologies.
According to reports from the BBC, the job cuts are expected to be distributed as follows:
- Over 15,000 cuts resulting from the completion of BT’s fiber network construction in the United Kingdom.
- More than 10,000 reductions attributed to decreased maintenance requirements on newly established UK networks.
- Another 10,000-plus positions were affected due to the incorporation of innovative technologies, including AI.
- Approximately 5,000 job losses attributed to restructuring initiatives.
Philip Jasen, the CEO of BT, expressed the company’s ambition to establish itself as a leader in the field of artificial intelligence (AI) technology. He emphasized that the integration of new technologies would pave the way for novel employment opportunities, despite BT’s anticipation of a reduced workforce by the end of the decade.
Some Regulators Begun Implementing Measures
With the meteoric rise in the popularity of ChatGPT, AI has taken center stage across various industries over the past year. Previously perceived as an exclusive domain of tech organizations or a tool utilized by customers without their explicit knowledge, the true potential of AI is now being unveiled. However, this advancement also poses a threat to traditional job roles.
Certain regulatory bodies have already taken notice and begun implementing measures to curb the proliferation of this technology. Italy has already enacted a ban on ChatGPT due to concerns surrounding its implications.
There are countries that remain open to the potential of AI. The UK Government, for instance, has declared its intention to adopt a less stringent approach to regulating the sector. This decision stems from an apprehension that existing regulations may rapidly become obsolete, given the swift pace of technological advancement.
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