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Banks Suffer from AI Talent Pool Shortage. How to Expand Your Team Quickly

June 24, 2024

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Address AI Talent Shortage with ODCs

In the age of rapid AI evolution, a lack of adequate talent can be a setback for your financial institution. Here’s an efficient alternative.

The banking and financial services industry is at the cusp of a radical transformation, thanks to the rapid evolution of artificial intelligence (AI). AI enables risk management, operational optimization, and sales expansion. Additionally, the technology can drive customer acquisition, onboarding, and advisory to create new revenue streams.

The global AI in banking market is estimated to expand at a CAGR of a whopping 32.8% between 2024 and 2033 to reach $37.15 billion by the end of the period.

On combining with machine learning (ML), big data analytics, microservices architecture, and blockchain, AI can empower banks to:

  • Discover potential customers
  • Build trust and loyalty
  • Ensure transparency
  • Improve customer services
  • Facilitates threat management
  • Minimize false positives in fraud detection

 

Further, the technology helps accelerate application processing by reducing friction across customer interaction channels. The timely availability of risk models and analytical reports in consumable formats can further empower decision-makers to make informed decisions. Most importantly, AI adoption enables banks and credit unions to respond swiftly to changing customer expectations and markets. However, accessing and retaining the right professionals for your business requirements can be a tough task in the tight AI talent market. Learn all about the contingencies in the AI workforce and ways to navigate them in this blog.

AI Talent Shortage May Reach Crisis Levels

AI Specialist is the #1 job emerging in the US with 74% annual growth between 2021 and 2023. 43% of executives in the country believe that AI adoption is creating a skill shortage.

The financial services industry is making significant strides in leveraging LLMs, computer vision, and other associated technologies to enhance operations and service delivery. Keeping pace with the competitive BFSI market is a critical success factor for banks and credit unions, as FinTechs leapfrog their growth leveraging their advantage in the digital space. As the global AI market expands, Generative and Super AI will evolve into full-fledged technology assistants for the banking industry. However, to capture the opportunities presented by the burgeoning technology, banks and credit unions must hire, manage, and train AI professionals.

Cyber Security is Equally Important

While AI and cloud computing will be paramount to organizational success, below-par cyber resilience can be detrimental to business growth in the long run. Insufficient data privacy and cyber security measures can be the biggest setbacks in the digital age. On the one hand, AI enables banks and credit unions to bolster security, while on the other, it enables fraudsters to orchestrate sophisticated attacks. This necessitates reinforcing cyber security parallelly to enhance technological dominance. The inadequacy of fundamental privacy and security measures might also impact your chances of procuring cyber insurance.

61% of mid-sized businesses use cybersecurity-enabled workers without hiring a dedicated team to manage cyber threats and privacy, while 9% rely on security best practices only. 47% of them do not even have an incident response plan.

How to Address the Widening AI Talent Gap

There are many ways to manage talent gaps in the interconnected world today:

Leverage the Gig Economy

The growing freelance culture allows financial institutions to hire independent AI experts. However, these experts are only useful for short-term engagements. The on-demand workforce is highly skilled, although hiring AI professionals on the fly is not viable for a deeply regulated industry. You must ensure that you can provide the necessary infrastructure and rely on employees to maintain the highest compliance standards throughout the project. You must implement additional measures to ensure the ethical and responsible use of AI when working with freelancers. Further, the explainability and transparency of AI models are subjective for individuals, which must be taken care of. Additionally, the deepening oversight is increasingly moving toward an AI + human approach, rather than an AI-instead-of-human model.

Technology Outsourcing

The idea of outsourcing is not new to the banking industry. Moving from manual to digital and web to mobile has been possible by outsourcing technology development. However, AI is not a standalone technology. Big data, analytics, and many other technologies work together in an AI model. To optimize the value of AI, it must be integrated across operations and processes. Also, an outsourcing partner offers only limited control to banks or credit unions over AI solution development. Therefore, an outsourcing approach can limit the applicability of AI solutions and restrict business growth. Plus, AI is still evolving. In a growing field, having a reliable and consistent team to integrate AI across operations and adapt to evolving market demands is critical to maintaining a competitive edge.

Choose an Offshore Development Center

An offshore development center (ODC) is like an extension of your bank’s team but managed by an external partner. An ODC is a self-contained technology partner that offers tailored solutions for your business needs and is dedicated to your success. You can choose the team size, and set of professionals, and remain a part of all decision-making through streamlined workflows and organized communication channels. Additionally, ODCs are flexible and enable on-demand scaling, depending on the scope of work.

Keep Pace with the Market

The global FinTech market is forecasted to reach $1.15 trillion, growing at a CAGR of 16.5% between 2024 and 2032.

Banks must adopt AI quickly to keep pace with the rapidly expanding FinTech space. The most plausible method to do so is to partner with the best ODC partner. Opus Technologies’ expertise is evident from its AI platform, FinGeniusAI, which enables banks to collaborate with and access top-tier talent to drive success. Speak to our experts to augment your team with AI specialists quickly and smoothly.

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