Artificial Intelligence: Accenture Study Says Banks Could Save $70 Billion Using AI

December 16, 2019 | Artificial Intelligence, News

The financial industry, including banks, could save hundreds of billions of dollars using automation and AI.

Accenture’s report issued last week says North American banks could save more than $70 billion by 2025. The whole financial services industry could cut costs by $87 billion to $140 billion by 2025. AI and automation could help or replace employees.

By 2025, 7% to 10% of tasks will get automated, the report estimates. These tasks include those performed by loan officers, personal financial advisers, tellers, and customer service representatives.

Accenture on AI: Transform the mundane to the higher-value

“Automation and augmentation can liberate hours that can then be refocused on human strengths and high-value work such as innovation, relationships and customer experience,” Accenture’s report on AI said.

Another report on AI in banking by Autonomous Next puts the figure of savings much, much higher at $447 billion, that too by 2023.

“Massive social and technology change is creating a range of threats and challenges,” for financial services firms, Accenture wrote regarding AI. However, the phenomenon creates “the opportunity to unlock significant value through a new workforce, new ways of working, and new job roles.”

Unfortunately, that is not the ground reality as far as traders on Wall Street are concerned.

Cornell University professor López de Prado recently testified before the House. He said that computer algorithms had already displaced thousands of traders from their jobs. This trend accelerated after the advent of electronic markets. The New York Stock Exchange floor, once abuzz with human traders, is now empty and runs on electronic technology.

[Related Story:  Artificial Intelligence: Why Wall Street Jobs Are Vulnerable to AI  ]

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