Like the Industrial Revolution of the eighteenth and nineteenth centuries, today’s Fourth Industrial Revolution has ripple effects in all sectors and industries, changing how organizations function and how everyday life looks. As artificial intelligence (AI) technology becomes more widespread, as a recent report by Fujitsu shows, it is clear that long-term success can only be achieved through the use of artificial intelligence (AI). While technology is being used to improve important areas of business, some people are worried about the impact it will have on their jobs and employment in general, as well as on their labor productivity.
What is RPA?
Robotic Process Automation (RPA), which relies on bots and AI employees to carry out business processes, is also gaining momentum worldwide. A study led by KPMG suggests that 20% of jobs in the sector could be automated in just five years. Robots could replace up to 40,000 jobs across the financial services sector. According to a recent survey by McKinsey & Company, 40% of banks and half of insurers believe robots will replace at least a third of their employees by then.
Robotic Process Automation (RPA) refers to the process of automating tasks by developing software and robots that can mimic human interactions. Although the system is still in its infancy, it has gained considerable popularity in recent years, which encourages its development. Organizations can reduce high costs and accelerate productivity while gaining a competitive advantage.
Results of Automation
Experience shows that when properly deployed intelligent automation (RPA) in financial companies, stakeholders can experience cost reductions of 10 to 25 percent. If you decide to hire people to teach bots and cognitive automation, the return on investment (ROI) can reach up to 50 percent. This type of automation can be introduced to increase process efficiency and reduce operational expenditure. Also, the global market for the use of smart robots in the financial sector is expected to exceed $1 billion by 2023.
Bottom Line
Technologies such as machine learning are shifting from concept to reality, driving the automation of core processes in financial services. The majority of financial-services firms use these technologies and see the benefits of boosting economic growth. Given the drive for efficiency and agility, for example, many jobs are expected to be created if more people are hired to develop and implement AI-based automation solutions. These technologies behave similarly to replace existing manual processes and create new ways of doing things, so new jobs are needed to accommodate this.…