Artificial intelligence (AI) is not a new concept, so why has it generated such intense interest recently? One key reason is its potential to reshape the workforce. Earlier this year, the International Monetary Fund estimated that AI could impact 60% of jobs in advanced economies. Half of these roles will see enhanced productivity, while the remainder will have tasks fully automated.
Generative AI (GenAI), such as ChatGPT, has shown how AI can significantly boost productivity in real-world applications, particularly within financial institutions. For example, DBS Bank's CSO Assistant is helping customer service officers deliver more relevant solutions faster. By transcribing customer queries in real time and conducting ‘live’ searches of the bank’s knowledge base, it quickly retrieves the information needed to address queries. As a result, it is expected to reduce call handling time by up to 20%. CSO Assistant is one of over 20 GenAI use cases DBS is rolling out, selected from more than 240 ideas generated internally in 2023.
“We initially thought employees would be apprehensive due to the concern that AI will take away their jobs. Interestingly, most were very happy [with the GenAI solutions we’ve rolled out like CSO Assistant] as they help remove employee toil,” says Lim Him Chuan, head of Group Strategy, Transformation, Analytics and Research at DBS Bank, on a panel discussion at the Singapore Fintech Festival 2024.
Carolyn Neo, CEO of the Institute of Banking and Finance (IBF), agrees that the majority of jobs in financial institutions will be affected by GenAI. “In the financial sector, most GenAI projects are at the proof-of-concept stage and targeted at internal use cases to manage risks. The wide-ranging internal use cases signal that the majority of the workforce will see their roles being augmented by GenAI or even redesigned since GenAI can automate manual tasks,” she says at the same panel discussion.
New skills needed
With GenAI expected to reshape job roles, what skills do employees need to continue delivering value to their organisation? Neo says employees must first have a basic understanding of GenAI in terms of its limitations and benefits, give the right prompt and feedback to get quality responses and know how to use it responsibly. “They may also need to pick up new skills for adjacent roles and tasks as they move up the value chain to evaluate the output of GenAI and deepen their domain skills,” she adds.
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Beyond hard skills, having soft skills, industry knowledge, mindset and experience is also crucial. “[In the era of GenAI, employees must hone] soft skills like communication and interpersonal skills, develop an understanding of what’s happening in the industry and have the right mindset, such as not fearing technology and being adaptable to change. Younger graduates should also try working in places that encourage innovation to gain experience and domain expertise,” says Tram Anh Nguyen, co-founder of the Centre for Finance, Technology and Entrepreneurship (CFTE).
Neo agrees that there is a need to gain the right experience. She adds: “GenAI has a lot of potential to reshape entry-level or junior roles, so young talent should try to get involved in GenAI projects during their internship or apprenticeship at financial institutions. Applied learning is the best way to build on their [theoretical and foundational] knowledge of GenAI from accredited courses.”
Meanwhile, Lim highlights the need to be able to frame problems, connect ideas and reimagine possibilities with GenAI. “[To complement those] organisations must provide employees with the opportunities to be exposed to different areas of the business, offer relevant training and empower employees to experiment and take risks,” he adds.
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Building a GenAI-ready workforce
As an emerging technology, GenAI has the potential to disrupt jobs in countless ways, making workforce redesign complex and challenging. To support organisations in preparing their workforce for GenAI, IBF is collaborating closely with the Monetary Authority of Singapore and industry partners to create a GenAI Jobs Transformation Map (JTM). This initiative will assess GenAI's impact on jobs and skills, helping the financial sector workforce use AI to boost their effectiveness.
“The GenAI JTM will look at three things. Firstly, it will project the adoption of the technology within the financial sector for the next three to five years. Secondly, it will provide a granular and comprehensive view of how GenAI will impact each of the key roles in a financial institution and the new skill sets needed. Thirdly, the JTM will suggest interventions for upskilling and reskilling. We’ve developed a GenAI-powered chatbot to make the JTM report more interactive and personalised so that it’s easier for financial institutions and employees to understand the report,” says Neo.
She also says that IBF can assist financial institutions in developing a training system aligned with the new skill sets required. For instance, it can design a foundational GenAI course for non-technical employees, incorporating certifications and the opportunity to work on proof-of-concepts.
Providing job support is another way IBF can help. “We can offer career conversion support, reskilling and career advisory services for jobs that will be redesigned. This will help employees in the financial sector transit to either an adjacent pathway or explore new career opportunities,” adds Neo.
Additionally, IBF will continue collaborating with institutes of higher learning to integrate GenAI fundamentals into curricula, equipping young talent with relevant skills before graduation. The initiative also includes internships and apprenticeships, offering hands-on experience with GenAI applications in the financial sector and fostering early exposure to emerging technology.
“These are the various ways IBF is helping the financial sector take a proactive and pre-emptive approach to build Singapore as a competitive Centre of Excellence for Gen AI application,” says Neo.
According to the McKinsey Global Institute, GenAI could add an annual potential of US$200 billion ($267.5 billion) to US$340 billion to the banking sector, largely due to increased productivity. However, reaping that benefit will require balancing the use of GenAI for automation with human expertise. Financial institutions must redesign jobs and prepare their workforce for a GenAI-powered future or risk losing their competitive edge by delivering a poor customer experience.
