Robots Could Wipe Out Some Of The Highest-Paying Jobs In Finance
After wiping out tens of thousands of routine jobs in the financial markets, robots – popularly known as algorithms – are now coming for the highest-paying jobs of those who model prices and build investment portfolios.
Marcos Lopez de Prado, a Cornell University professor and the former head of machine learning at AQR Capital Management LLC, explained this when he testified in Washington on the impact of artificial intelligence on capital markets.
Many of the job loses will “not necessarily (be) because they are replaced by machines, but because they are not trained to work alongside algorithms,” Lopez de Prado told the U.S. House Committee on Financial Services.
De Prado said that, while tech firms started distributing data and crowdsourcing the jobs of data analysts through special tournaments, any investment challenge could be solved by an army of data scientists without a financial background.
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This means that asset managers could crowdsource their entire research function, while insurance companies could do the same with their actuarial models, according to RT.
“Financial ML (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,” Lopez de Prado told the committee.