The Economist this week laid out just how quickly automation is taking over finance. Funds run by computers that follow human-set rules account for…
- 35% of the U.S. stock market
- 60% of institutional equity assets
- 60% of trading activity
Last month, exchange-traded funds (ETFs) and mutual funds automatically tracking stock and bond indices hit $4.3 trillion invested in American equities, surpassing the sum run by humans for the first time.
“Technological efficiencies” will lead to about 200,000 job cuts in the U.S. banking industry over the next decade, Wells Fargo said this week. And PwC found last year that about 30% of finance and insurance jobs in developed economies will be at risk of automation by 2029.
Too often we think of automation just affecting manufacturing jobs. It will affect many other sectors. This trend is inevitable in a worldwide economy. Industries have to stay economically competitive and automation will be essential to compete. Those who want to succeed in the workforce will need the right skills.
What skills are needed for the years ahead? (also from the “Morning Brew”)
- artificial intelligence
- machine learning
- data science