AI likely to destroy 90,000 asset-management jobs by 2025
Artificial intelligence will lead to the loss of 230,000 jobs across the world's financial markets, says a new report by consulting firm Opimas. The asset management sector will be hardest hit, with 90,000 job losses, Opimas predicts. It says growing disenchantment with traditional, active, management of assets will lead to more investors turning to cheaper automated strategies using AI technology, including robotic process automation, machine learning and cognitive analytics. Spending on AI technology will reach $2.8bn in 2021, up from a likely $1.5bn this year.
By 2025, artificial intelligence (AI) technology will reduce the number of employees in asset management globally by 90,000, according to research.

A new report authored by research and consulting firm, Opimas, found employees in capital markets globally will decrease by 230,000 and the asset management industry will likely shrink the most as a result of AI implementation.

“AI will intensify clients’ disenchantment with traditional asset managers and lead them increasingly to cheaper and automated strategies,” it said.

The report explained AI technology, including robotic process automation, machine learning and cognitive analytics, will significantly reduce headcounts across financial services firms.

“Securities services firms, given the repetitive nature of many tasks conducted by them, are ideal candidates for a contraction of staff due to the rollout of AI technologies,” it added.

Spending on AI technology in capital markets is expected to reach $1.5 billion this year and $2.8 billion by 2021.

AI applications have huge potential for business units across the broader capital markets, largely improving operational efficiency and reducing costs significantly.

Opimas said: “AI is still in the learning stages; it can’t yet adapt to every scenario and all situations, but it will happen. AI technologies—specifically cognitive analytics and machine learning—have the potential to reshape the financial industry, becoming the building blocks to establish a new business model.”