Banking CEOs embrace AI amid workplace challenges
The rapid implementation of AI within banking and financial markets institutions has caused a decline in workplace culture
- |
- Written by Banking Exchange staff
New research from the IBM Institute has revealed that banking and financial markets CEOs are experiencing difficulties in workplace culture following the implementation of AI.
The findings are derived from IBM’s global cross-industry study, including the perspectives of over 3,000 surveyed CEOs across retail, corporate, commercial and investment banks.
Generative AI is perceived as the key to unlocking competitiveness amongst both banking and financial markets establishments.
57% of the CEOs surveyed stated their belief that maintaining a competitive advantage is dependent on the effectiveness of AI within a business.
However, the findings of the survey also revealed that rapid AI implementation is followed by complex internal challenges amongst employees.
Despite 59% of CEOs declaring that cultural change within a business is more important than overcoming technical challenges, 60% are still pushing for the adoption of AI within their business, more quickly than they feel employees are comfortable with.
A large contributing factor to the decline in workplace culture is likely linked to just under half of respondents confirming their employees do not fully understand the impact they received following strategic decisions, such as the implementation of AI roles.
"Our research reflects the tremendous pressure CEOs are under to keep their competitive edge. Alongside profitability and productivity, getting the right skills remains a persistent challenge, with CEOs now hiring for roles that did not exist until recently," said Shanker Ramamurthy, global managing partner banking & financial markets, IBM Consulting.
"Workforce needs are shifting rapidly in the financial services sector and CEOs must ensure that upskilling programs are prioritized as an important element of any financial institution's enterprise strategy for scaling generative AI."
However, regardless of these challenges, 66% of the sample believe the potential productivity gains from automation are so great that they would accept significant risks to stay competitive.
Tagged under Technology, The Economy, Human Resources, Artificial Intelligence, Feature, Management, Lines of Business, Feature3,
Related items
- Global Financial Inclusion Levels Rise For The Second Year Running but US drops out of Top 5
- UK Mandates Banks to Reimburse Bank Transfer Fraud Victims
- Americans Choose Sacrifices Over Financing to Afford Holiday Shopping
- JPMorgan Chase Launches Hiring Initiative to Bolster Financial Inclusion
- Michigan State University Federal Credit Union Enhances Financial Services