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The time to adapt to artificial intelligence (AI) technology is upon us. Banks and fintechs have recognized this: They are actively working to introduce artificial intelligence into their operations. Morgan Stanley recently unveiled plans for an AI assistant called Debrief, for example.
However, AI adoption comes with its share of challenges, with the technical details and implementation costs being only a small part of it. Right now, 60 percent of executives in banking and financial markets acknowledge that they are pushing for the implementation of AI faster than people may be ready for it.
So, how can financial organizations better prepare their employees for the advent of AI? What can be done to deal with staff and cultural challenges?
Challenges slowing AI adoption
One of the biggest challenges in AI adoption is the rather prominent shortage of skilled AI professionals. The more AI spreads across industries, the bigger the demand for AI talent grows. At present, demand for knowledgeable workers far exceeds supply.
Furthermore, there is also resistance among employees themselves to consider, as many people may worry that artificial intelligence will make their roles unnecessary, leading to job losses.
This anxiety can result in reluctance to engage with AI initiatives, slowing down the adoption process. Even more optimistic workers might be resistant to the idea, as dealing with AI would require them to retrain and acquire new skills.
From a technical viewpoint, it also bears mentioning that many organizations in the banking sector operate on legacy systems that are often not compatible with modern technological developments. Such outdated infrastructure may be unable to support AI services, making integration difficult, costly, and resource intensive.
Moreover, due to strict data protection rules, companies often cannot use common large language models (LLMs), such as cloud-based services like ChatGPT. In order to stay compliant with regulations, companies must develop their own AI models, which requires significant investment and expertise. That brings us back to the shortage of AI professionals.
Healthy AI adoption starts with education
What can be done about these challenges?
First, the scarcity of specialists means that there is a need for a strategic approach to talent acquisition and development. Rapid technological advancement has outpaced the availability of skilled professionals, and if companies want to gain a competitive edge, they need to start securing expertise in AI as quickly as possible.
While the competitors are still deliberating their AI strategies, you can start proactively developing in-house talent. Recognize that artificial intelligence is not a temporary trend that will pass before long. So, develop a long-term AI adoption strategy that includes continuous investment in AI technologies and personnel development.
Secondly, while many employees worry that their roles could soon be replaced by AI, they often do not take the time to consider how their jobs can actually be made easier through automation. AI will not replace people outright, but their roles will indeed need to transform.
In order to overcome employee resistance to AI adoption, company leadership must maintain clear communication about the benefits of this technology and how AI can enhance their work. Education has to be at the forefront: ensure that your staff is aware of ongoing AI initiatives and invest in their ongoing training to keep them prepared for the evolving job landscape.
Change does not come easily but proper management can alleviate fears and make the transition easier.
Lastly, some companies will need to develop their own AI models. Data is the cornerstone of this process, so continuously collecting it is of great importance.
For example, if you have extensive amount of data from customer support communications, it can be used to train specific support AI models that would improve the efficiency and quality of service in this area. In the same vein, compliance-related data can be gathered to develop AI models that can assist with regulatory requirements, ensuring adherence to proper safety standards.
Remember: AI is for people too
When trying to succeed in the technology race, it is important not to forget about people. Communicating to them about why AI adoption can be a good thing is crucial if you want to broaden their horizons as professionals. By starting the AI adoption process now and prioritizing education and training for their workforce, companies can better prepare themselves for the AI-driven future.
Roman Eloshvili is the founder and CEO of xData Group, a B2B software development company.
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Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
