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Bankers Publicly Embracing Robots Are Privately Fearing Job Cuts (bloomberg.com)
An anonymous reader quotes a report from Bloomberg: Within the upper echelons of many financial firms, there's a lot of soul searching as executives prepare to roll out a new generation of technology. Publicly, they're upbeat, predicting machines will perform almost all repetitive tasks, freeing humans to focus on more valuable pursuits. Privately, many confide to peers, consultants and sometimes journalists that they're worried about what will happen to their staffs -- and what to tell them. There's also uncertainty. Maybe it's all overblown, executives say, because the tech will be hard to implement and humans will find new roles. Or perhaps it's the beginning of the end for legions of professionals in one of the world's most lucrative fields. Can jobs held by office-dwelling millionaires disappear like those on factory floors? The result, is that employees aren't getting a clear message on what's to come.
For a rosy scenario, look to McKinsey & Co. In July, the consulting firm published a report estimating machines are ready to assume roughly a third of the work now performed by banks' rank and file. The authors framed it as positive: People will have more time to tend to clients, conduct research or brainstorm ideas. So far, it noted, firms at the forefront aren't slashing jobs. At JPMorgan Chase & Co., one of the most tech-savvy banks, Chief Executive Officer Jamie Dimon predicted in June that his workforce will more likely grow than shrink over the next 20 years. Technology may displace workers, he's said, but it also creates opportunities. Yet in interviews, about a dozen Wall Street executives and consultants responsible for deploying technologies -- and steeped in their capabilities -- were more bearish on humans. Machines will take over task after task, they said, and banks simply won't need nearly as many people.
For a rosy scenario, look to McKinsey & Co. In July, the consulting firm published a report estimating machines are ready to assume roughly a third of the work now performed by banks' rank and file. The authors framed it as positive: People will have more time to tend to clients, conduct research or brainstorm ideas. So far, it noted, firms at the forefront aren't slashing jobs. At JPMorgan Chase & Co., one of the most tech-savvy banks, Chief Executive Officer Jamie Dimon predicted in June that his workforce will more likely grow than shrink over the next 20 years. Technology may displace workers, he's said, but it also creates opportunities. Yet in interviews, about a dozen Wall Street executives and consultants responsible for deploying technologies -- and steeped in their capabilities -- were more bearish on humans. Machines will take over task after task, they said, and banks simply won't need nearly as many people.
I used to work for a major regional finance company in their IT department, after almost three years there I finally made it down to one of the processing floors. What a disaster, something like 200 people on this floor, all overweight "lifers" with at least 18" deep of nick-knacks on their desk, they did... something? One lady I helped, every 10th check did not have the company logo on it. Her job was to print checks for brokers. Somehow the 20 programmers up on the IT floor hadn't gotten around to automating her job yet. The other 199 people on this floor had similarly mind-numbing jobs that were likely 2-10 lines of scripting away from being automated away. I suspect as these people get hit by busses and/or die of clogged arteries, their jobs will be automated. But 200 jobs is roughly 10% of that company, an entire floor of a skyscraper, poof, gone. They'll likely be out-competed by a much smaller company that can do the same services for a quarter of the cost and 6x the uptime before the last of those lifers retires.
moox. for a new generation.