Citi GPS has released a report on the impact of AI in finance, highlighting key trends and forecasts. Here are the main takeaways:
1. 📈 By 2028, global banking profits are projected to reach $2 trillion, driven by AI adoption.
2. 🚀 Just as the steam engine and the internet revolutionized their eras, AI is expected to commoditize human intelligence, with finance leading this transformation.
3. 🔄 Technological advances historically eliminate some jobs and create new ones. AI is anticipated to accelerate this cycle.
4. 🧪 Currently, generative AI in finance is mostly in the proof-of-concept stage, but rapid and unprecedented transitions are happening.
5. 🔄 Incumbent financial firms are integrating AI into existing products to boost efficiency, while startups are leveraging AI to transform traditional financial services.
6. 🤖 The rise of AI agents and bots will change #money and #finance, potentially creating a world where machines perform transactions with minimal human intervention.
7. 📊 AI can significantly enhance productivity in banks by automating routine tasks, optimizing operations, and allowing employees to focus on higher-value activities.
8. ⚠️ Challenges and Risks: The shift to AI raises concerns about data security, regulation, compliance, and ethics. AI’s propensity for hallucinations and generating false information poses reputational risks for financial institutions.
9. ⏱️ Adoption Speed: Digital companies built on cloud technologies are likely to adopt AI faster, followed by established banks. Those burdened with legacy tech and culture may lag, potentially losing market share.
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