AI is Taking My Job (or is it?)
Rebecca Healey - Managing Director, Redlap Consulting
It’s taken me six months to write “AI Beyond the Hyperbole”, a report on AI in trading commissioned by Plato Partnership. You, however, are probably going to read it in minutes—maybe even seconds—especially if you use AI to scan just for the key points.
So, why did I spend so much time on something AI could potentially do? Because those six months were filled with interviews, researching, revisiting questions, and clarifying details to ensure accuracy. In fact, at the beginning of this process, I asked AI to write the report for me. The link to that version is here and the Abridged Version of my report is here - https://bit.ly/3NJE0Id and when the full report is published next week, you can decide whether my 6 months of research was worth it. Better still join me at the Plato Conference on Monday 21st to hear the key findings – register here.
The point I’m making is that it’s not an “either/or” situation. AI helped me write the report, assisted with images, contributed to learning, and even summarized content for me. But AI doesn’t yet connect the dots the way humans do. It doesn’t spark those “aha” moments of true creative thought alone. Could it one day? Maybe. But that day isn’t here yet.
Nor does AI compensate yet for 25 years of industry experience to garner collaborative thought. While I was writing this AI report, I drew on what I had learnt from earlier reports written for Larry Tabb at the TabbGroup “One Touch, One World: The Future of Investment Banking” and “The Future of Asset Management: AI in Asset Management” published by Liquidnet in 2019 - All three papers are built from hours of conversations from market participants, contributions to working groups such as FIX Trading Community’s working groups. It is never one individual - let alone one machine - that writes a research paper. Writing research is a collective gathering of different views and opinions – it can help shape an individual view, but good research means looking into every aspect of an argument or discussion. Not just the one you first agree with.
So the notion that AI is going to take everyone’s job? I just don’t buy it. AI will take some jobs—that’s already happening—but it’s also creating new ones. The key – as always- is adapting to the changing landscape.
One of my favourite takeaways from this research was the idea that where we are with AI today could be akin to the arrival of electronic domestic goods. Think of a 1950s housewife and how the introduction of a washing machine revolutionized her life, her family’s life, and even her community. That’s AI. It's a tool that enhances what you do, not a replacement. But a tool that will revolutionize how we work, impacting not just the work we do but how our communities operate – at work and at home.
Ultimately, as the financial industry continues to evolve—fuelled by AI, decentralized finance (DeFi), neobanks, and blockchain—firms that integrate AI effectively will lead the future of finance. To explore both the challenges and opportunities presented by AI we spoke with 49 firms, including asset managers, sell-side firms, and vendors. 40% were based in the UK, 27% in Europe, and 33% in the US. We looked at AI's current role in trading, the associated risks and opportunities, and how both the industry and regulators can best adapt to the rapid changes – and opportunity - ahead.
Watch this space for more.
