Impact of Technology on Employment: Financial Services Analysis

This report analyzes the impact of technology, specifically automation, big data, and machine learning, on employment within the financial services and accounting industries. The author argues that while technology enhances efficiency and reduces costs, it also leads to job displacement, particularly in entry-level roles involving data entry and customer communication. The report highlights the increasing use of AI algorithms for decision-making, personalized financial advice, and the automation of tasks previously performed by human employees. It acknowledges the ongoing demand for skilled professionals with expertise in areas where human intelligence is essential, but also notes the intensified competition for employment. The report references several sources to support the claims and suggests that employees must acquire necessary skills to adapt to the changing job market. The conclusion emphasizes that the initial investment cost of automation is significant but offers long-term benefits for organizations by reducing overall business process costs, which in turn can result in reduced employment opportunities and increase the need for employees to possess advanced skills to remain competitive. The author also mentions the need for employees to obtain those necessary skills if they want to sustain their job in this era which is dominated by advancement in computing systems and related software and this is applicable for employment in financial industry as well.

Running head: ANALYSIS OF EFFECT OF TECHNOLOGY ON EMPLOYMENT
ANALYSIS OF EFFECT OF TECHNOLOGY ON EMPLOYMENT
Name of student
Name of university
Author’s note:

1ANALYSIS OF EFFECT OF TECHNOLOGY ON EMPLOYMENT
The increasing use of computer systems and software in the financial services and
accounting sectors is likely to result in fewer job opportunities in these areas in the
future
Innovation in technology has not only enhanced efficiency of computer system and software,
but it has also made these system affordable. Therefore, application of computer systems and
software has become so popular for various industries. One such industry where application
of technology has become significantly popular is financial services and accounting industry.
The main reason for this is that it has provided organizations opportunity to enhance its
productivity and has made it easier to manage business requirements as well.
However, there has been concern among employees in this industry is that, application of
computer system and software will affect employment and it will reduce job opportunities as
jobs that are performed will be done by these computing systems and software. In this
context, an extensive analysis is provided to identify whether application of technologies will
affect employment, how it will affect employment and which jobs are most likely to be
affected in this process as well.
Application of big data and machine learning has become significantly popular. It provides
advanced algorithm which is capable of analysing large data set which is not possible through
manual data analysis that relies on human intelligence. However, application of big data and
machine leaning is not only enhances efficiency of data analysis, it automates decision
making process as well. In financial industry, automation in decision making process is
playing a significant role. Algorithms related to artificial intelligence are capable of
processing of large amount of financial announcements, press releases which human traders
are not so efficient in doing especially when amount of data is significantly large. It is
important to identify that these algorithms are not only efficient in data analysis, provides

2ANALYSIS OF EFFECT OF TECHNOLOGY ON EMPLOYMENT
decision according to data analysis. Decision making process is not only faster but it is
accurate as well. Therefore, organizations are opting of automation rather than obtaining
human workforce for organization process as well.
In order to ensure consumer satisfaction and enhance business process, financial
organizations are providing its consumers personalized financial advice according to
consumer requirements. It is not only enough to provide financial advice that is effective, but
it needs to be cost effective. Application of artificial intelligence has helped to provide
financial services in lower cost while ensuing accuracy of financial advices that are
customized according to consumer requirements as well.
While application of technologies for example artificial intelligence and machine learning is
helping organizations to reduce cost of implementing business strategies, organizations are
less interested in employing people for various job roles. Along with cost, lack of expert in
industry is another important reason why there is less employment. Therefore, only
application of computing services and software should not be hold responsible for this. There
is still demand for high quality experts for job aspects where human intelligence is required.
However, it has increased competition for employment. Organizations are looking for
professionals who are capable of providing knowledge and skills that organizations are
looking for. Companies are less interested in employing people who will require extensive
training for obtaining required knowledge and skills as there are software which are capable
of doing jobs faster and it is cost efficient as well.
However, entry level jobs will be most affected by this application of computing systems and
software which requires less skilled workforce. This type of jobs include data entry, obtaining
feedback and issues of consumers, communicating with consumers regarding quality of
services and other entry level jobs which have been traditionally done by human employees.

3ANALYSIS OF EFFECT OF TECHNOLOGY ON EMPLOYMENT
However, now these type of jobs are being automated and being replaced by artificial
intelligence. Although initial cost of these type of automations is significant, but it provides
organizations in reducing overall cost of business process. This is a one-time investment
which organization needs to consider as there is no requirement for hiring employees for
these job roles and therefore, reduces cost for employment and therefore, it is beneficial for
organization as well. Although there is demand for job roles that requires advanced skills and
knowledge, employees have to obtain those necessary skills if they want to sustain their job
in this era which is dominated by advancement in computing systems and related software
and this is applicable for employment in financial industry as well.

4ANALYSIS OF EFFECT OF TECHNOLOGY ON EMPLOYMENT
References:
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и прикладные науки сегодня (pp. 50-52).
Coombs, C., & Redman, A. (2018, March). The impact of robo-advice on financial advisers:
a qualitative case study. In 23rd UK Academy for Information Systems International
Conference (pp. 1-23).
Estlund, C. (2018). What Should We Do after Work: Automation and Employment. Yale
LJ, 128, 254.
Frey, C. B., & Osborne, M. A. (2017). The future of employment: How susceptible are jobs
to computerisation?. Technological forecasting and social change, 114, 254-280.
Sheedy, C. (2017). What CPAs need to do to survive the automation revolution. Journal of
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February 2020]. Hülya BOYDAŞ HAZAR, 263.