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Financial industry fears AI could decimate high-paying positions

At a two-hour hearing in Washington, D.C. on Friday, lawmakers questioned experts on bias in artificial intelligence, the struggle to attract skilled workers, and how to navigate and regulate an increasingly data-driven financial market, Bloomberg reports.

Why it matters, per Bloomberg: "The use of algorithms in electronic markets has automated the jobs of tens of thousands of execution traders worldwide, and it's also displaced people who model prices and risk or build investment portfolios," the former head of machine learning at AQR Capital Management LLC Marcos Lopez de Prado said.

What they're saying: “Financial machine learning creates a number of challenges for the 6.14 million people employed in the finance and insurance industry, many of whom will lose their jobs — not necessarily because they are replaced by machines, but because they are not trained to work alongside algorithms,” Lopez de Prado told the House Committee on Financial Services.

  • Kirsten Wegner, CEO of Modern Markets Initiatives called for regulation, recommending "funding resources, technological capacity and access to AI and automated technologies to be a strong and effective cop on the beat."
  • Rebecca Fender, senior director at the CFA Institute cited a survey of more than 3,800 respondents who anticipate their jobs to dramatically change over the next 5-10 years.

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