As fintechs ramp up adoption and usage of various artificially intelligent technologies, companies face “workforce and culture challenges,” suggests a new report from IBM’s Institute for Business Value.
Tech modernization is the highest priority over the next three years for many chief executives across Canada, according to the report. Why? Many are sure that staying afloat tech-wise is more integral than ever to longterm success.
IBM found that a majority of financial and banking executives across an array of markets around the world agree that generative AI is “perceived as the key to unlocking competitiveness,” with a competitive advantage resting on who is wielding the most advanced version of the tech.
“Our research reflects the tremendous pressure CEOs are under to keep their competitive edge,” stated Shanker Ramamurthy, who serves as global managing partner of banking and financial markets for IBM Consulting.
However, many fintech CEOs are “navigating complex issues around culture” as they implement AI at work, the report found, with the tech being adopted on occasion “more quickly than some employees might find comfortable.”
Another area of struggle for corporate leaders in Canada surrounds skills. More than half of CEOs report difficulties filling key technology roles. Exasperating the issue is a rapid shift in what skillsets are needed: half of executives reported hiring for roles that did not exist a year ago.
“Alongside profitability and productivity, getting the right skills remains a persistent challenge, with CEOs now hiring for roles that did not exist until recently,” noted Ramamurthy.
Fintech CEOs in 2024 reported on average that more than one-third of their workforce will require retraining and reskilling over the next three years—a figure that is up markedly from just 7% in 2021.
“Workforce needs are shifting rapidly,” the IBM expert continued, “and CEOs must ensure that upskilling programs are prioritized as an important element of any financial institution’s enterprise strategy for scaling generative AI.”
In addition to the workforce, fintechs must consider the consumer too. Not all Canadians are excited about a dose of AI in their products and services.
Transparency around adopting new technologies is therefore “critical for fostering trust among customers and employees” alike, the report concluded.
“CEOs in the banking and financial markets sector are keenly aware of the competitive benefits that generative AI will bring and are eager to move quickly,” stated John Duigenan, Distinguished Engineer & General Manager, Global Financial Services Industry at IBM.
“In their enthusiasm to embrace the benefits of this potent new technology, it’s critical that financial services leaders ensure their institutions are taking steps to engineer trustworthy AI designed to reduce risk and win the confidence of their customers, employees and regulators,” he said.
The IBM Institute for Business Value launched in 2001 and today publishes dozens of reports per year.
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