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AI progress impediments due to talent deficiencies in the workforce

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AI development obstacles due to talent deficit contributing significantly to restricted expansion
AI development obstacles due to talent deficit contributing significantly to restricted expansion

AI progress impediments due to talent deficiencies in the workforce

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In a significant development, the Financial Services Skills Commission has released a report titled 'Unlocking AI's potential: The skills that matter'. The report, unveiled at the Future Skills Conference in London, highlights the impact of Artificial Intelligence (AI) on the financial sector and the human-centered capabilities needed for successful AI adoption.

According to the report, every role in the financial sector will be altered by AI, with human behaviors in greatest demand. AI is expected to help produce better products, improve data analytics, and enhance customer service. However, addressing skills gaps is necessary to unlock AI's potential in the financial sector.

Claire Tunley, Chief Executive of the Financial Services Skills Commission, states that AI offers growth opportunities for the financial services sector. She emphasizes the importance of bridging the widening skills gap for successful AI adoption. The report identifies financial analysts, directors, account managers, and project managers as the roles most impacted by AI.

Nathan Sasto, Partner at EY, echoes Tunley's sentiments, recognizing the importance of human-centered capabilities for shaping a more holistic and effective AI reskilling strategy. Technical expertise remains important, but human-centered capabilities like empathy, adaptability, and relationship management will deliver the greatest value, according to Sasto.

The key human-centered capabilities needed for AI adoption in the financial services sector include strong human judgment and ethical decision-making, the ability to embrace uncertainty and adapt expertise continuously, interdisciplinary skills bridging technology, risk, and strategy, expertise in interpreting complex AI-generated insights, communication skills to manage client-facing AI tools, and risk management capabilities to monitor AI behaviors.

Despite the increase in demand for technical skills, the demand for relationship management and empathy outweighs it. Since 2021, there has been a 17-fold increase in demand for conversational AI skills. The report projects that AI will add £26bn of value to financial and professional services by 2030.

John Guy, CEO of Simply Get Results, highlights the importance of complementary human skills in unlocking AI's potential in the financial sector. He suggests that employers should identify the right mix of technical and human skills needed to meet their unique business goals.

However, there is a 35 percentage point gap between AI-related skills demand and the availability of talent. HR managers and HR administrative roles are most likely to be impacted by large language models. The demand for AI specialists makes up a small share of the workforce, at 1.5%.

The full report, including further data and analysis, is available for access. The report underscores the need for a balanced approach to AI adoption in the financial sector, emphasizing the importance of human-centered capabilities in maintaining trust and accountability in the financial ecosystem. As AI automates routine processing, human roles evolve toward decision-making, advisory interactions, and governance to ensure a successful and ethical future for AI in the financial services sector.

[1] Financial Services Skills Commission (2022). Unlocking AI's potential: The skills that matter. [online] Available at: https://www.fs-skills.org/research/unlocking-ais-potential-the-skills-that-matter/

[2] EY (2022). The human-centric AI advantage. [online] Available at: https://www.ey.com/en_gl/services/consulting/artificial-intelligence/human-centric-ai

[3] Deloitte (2021). The future of work: AI, humans, and the hybrid team. [online] Available at: https://www2.deloitte.com/content/dam/Deloitte/us/Documents/about-deloitte/us-consulting/uscs-the-future-of-work-ai-humans-and-the-hybrid-team.pdf

[4] McKinsey & Company (2021). The human-AI collaboration advantage. [online] Available at: https://www.mckinsey.com/business-functions/mckinsey-analytics/our-insights/the-human-ai-collaboration-advantage

  1. To successfully adopt Artificial Intelligence (AI) in the financial sector, it's essential to focus on human-centered capabilities such as strong human judgment, ethical decision-making, adaptability, and relationship management, in addition to technical skills like interpreting AI-generated insights and managing client-facing AI tools.
  2. The Financial Services Skills Commission's report, 'Unlocking AI's potential: The skills that matter', reveals that although there is an increase in demand for technical skills, the demand for relationship management and empathy outweighs it, with a surge in demand for conversational AI skills since 2021.
  3. Career development in the financial sector, particularly in roles like financial analysts, directors, account managers, and project managers, may require a combination of AI-related skills and human-centered capabilities, such as risk management, communication, and interdisciplinary knowledge bridging technology, risk, and strategy, to meet the unique business goals of various organizations.

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