“Enthusiasm for the efficiency gains offered by AI is equally evident in Luxembourg, where the technology appears to offer at least some help in addressing with the acute shortage of skills in key areas for the financial industry--although the issue is complicated by the country’s dearth of IT specialists,” said Simon Gray, Vitalbriefing editor-in-chief, in a recent white paper on artificial intelligence. Photo: Vitalbriefing

“Enthusiasm for the efficiency gains offered by AI is equally evident in Luxembourg, where the technology appears to offer at least some help in addressing with the acute shortage of skills in key areas for the financial industry--although the issue is complicated by the country’s dearth of IT specialists,” said Simon Gray, Vitalbriefing editor-in-chief, in a recent white paper on artificial intelligence. Photo: Vitalbriefing

The impact of artificial intelligence technologies on Luxembourg’s financial services sector remains ambiguous, even as the number of AI use cases grows, according to a Vitalbriefing white paper.

It is premature to assess whether AI will result in a net gain or loss in financial sector employment, especially in administrative roles, a recently issued white paper has observed. The potential shift towards roles demanding more creativity and innovation could exacerbate the existing competition for sought-after technology skills in the grand duchy, the paper stated.

The white paper, titled ‘The AI Revolution in Financial Services’, was published by Luxembourg-based market intelligence firm Vitalbriefing on Friday. Authored by Simon Gray, the firm’s editor-in-chief, the report offers insights gathered from interviews with leading AI experts across Luxembourg and Europe, exploring AI’s implications in various financial sectors.

Gray said that AI is reshaping workplace practices in the financial services industry, enhancing efficiency and driving cost savings globally. The report delved into AI’s increasing role in areas such as portfolio management, know-your-customer procedures, financial crime checks, regulatory compliance and the analysis of sustainability data.

, CEO of Vitalbriefing, highlighted the profound impact of this shift, likening it to the industrial revolution, in a press announcement. The white paper noted that, while AI in finance is still in its early stages, it has already made a considerable impact on operations within banks, investment funds and the insurance sector.

Gray further observed that the past year has seen a variety of AI applications emerge within the financial services sector. These include chatbots assisting bank employees with customer inquiries, the automation of tasks such as summarising meetings, scheduling appointments, drafting communications, extracting key data from dense documents, assessing customer creditworthiness, identifying potential financial crimes or fraud, predicting future trends, and evaluating the financial feasibility of rescuing banks in difficulty.

Highlighting the rapid advancement of AI, Gray noted that a survey conducted by Vitalbriefing on behalf of the Luxembourg Financial Sector Supervisory Commission (CSSF) between October 2021 and January 2022 identified nearly 160 AI use cases in Luxembourg’s financial industry, underscoring the swift pace of AI development within the sector.

The full 38-page white paper can be downloaded .

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