NEW YORK, June 20, 2018 /PRNewswire/ -- Broadridge
Financial Solutions, Inc. (NYSE:BR), a global fintech leader and
new addition to the S&P 500 Index, today released survey data
highlighting the progress and challenges associated with artificial
intelligence (AI), which includes machine learning (ML) and
robotics process automation (RPA) across the capital markets
industry.
AI in Reality, More Than Meets the
Eye
An overwhelming majority (80 percent) of respondents, are at
least assessing the value of AI, ML or RPA initiatives, according
to the survey of about 200 financial services professionals
conducted at SIFMA's Operations Conference & Exhibition in
May. More than one-third (39 percent) of respondents are in proof
of concept or pilot stages; however, only 22 percent are actually
in production. They indicated that data-specific challenges are
preventing their firms from taking advantage of AI's potential
benefits.
Data, Cost and Business Justification Challenge AI
Deployment
With most respondents at least assessing AI's potential for
their business, the majority of survey respondents (53 percent)
cited "data quality and standardization" as one of their top
challenges to deploying AI; moreover, 40 percent see the
availability of data as an obstacle. This was followed by business
justification (40 percent) and the cost of implementation (38
percent).
Interestingly, nearly all respondents (96 percent) recognized
that co-developing key AI processes with other firms or vendors
presents benefits such as the shared cost of innovation.
"AI has the power to completely transform financial services,
however many capital markets firms struggle to make a business case
for the investment in AI, especially since their data is
decentralized," said Mike Alexander,
President of North America Wealth and Capital Markets Solutions.
"By leveraging a consistent data fabric across a network of firms
and mutualizing innovation investment with a strategic partner,
firms can truly realize the value of AI and create a competitive
advantage with next generation technologies."
Use the Force: AI Will Enhance Jobs, Not Replace
As more firms pursue AI implementation, questions are surfacing
about how digital labor will impact headcounts and job security.
Contrary to some predictions, one-third (32 percent) of
Broadridge's survey respondents predict that AI will reduce their
organization's need for human labor by just 10 percent or less in
the next three years, suggesting that there is not a huge fear of
job loss due to AI. Fewer than five percent of respondents
anticipate AI reducing human labor by 50 percent or more in the
same timeframe.
"Transformers" and "Star Wars" Top "The Terminator"
Survey respondents were asked about their vision for the future
of AI, gauging their sentiment towards the technology's future by
likening its capabilities to one of the three popular movies.
Results were mixed but skewed positive. Nearly half (46 percent) of
respondents declared that the movie "Transformers" (likened to a
combination of "good" and "bad" AI) was the best representation of
the future of AI and about one-third selected "Star Wars" (AI as a
friendly or additive tool). For the same question, less than
one-fifth of the survey pool selected "The Terminator" to indicate
that AI is or will become "dangerous."
Methodology
The survey of 197 representatives of asset managers, banks,
broker-dealers, consultancies, industry regulators, technology
vendors, wealth managers and others was conducted at SIFMA's 2018
Operations Conference & Exhibition in Phoenix on May 8-9,
2018.
About Broadridge
Broadridge Financial Solutions, Inc. (NYSE:BR), a $4 billion global fintech leader, provides
investor communications and technology-driven solutions for
broker-dealers, banks, asset managers and corporate issuers
globally. Broadridge's investor communications, securities
processing and managed services solutions help clients reduce their
capital investments in operations infrastructure, allowing them to
increase their focus on core business activities. With over
50 years of experience, Broadridge's infrastructure underpins proxy
voting services for over 50 percent of shares globally, processes
votes in more than 100 countries, and processes more than
$5 trillion in fixed income and
equity trades per day in more than 70 countries. Broadridge employs
approximately 10,000 full-time associates in 16 countries. For more
information about Broadridge, please visit
www.broadridge.com.
Media
Cindy Engman
Prosek Partners
+1 646-627-8799
cengman@prosek.com
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SOURCE Broadridge Financial Solutions, Inc.