A promise of reduced costs, streamlined processes and error free results makes the use of Artificial Intelligence in regulatory reporting attractive to firms. We outline the ins and outs of its effects on the sector.
Our previous article concluded with how the need for human input is diminishing with the introduction of automation in certain areas of regulatory reporting, and how individuals will be freed up to become more commercially focussed.
Behind the scenes, firms have been using robotics and automation for the last couple of years, but now it is starting to be applied in the functioning business. Whatever you call it; robotic process automation or Artificial Intelligence, it is essentially the use of software to execute processes that humans would carry out.
The technology can be integrated with existing data and systems, easing it into the business by starting with simple and repetitive rules-based tasks before moving to more advanced functionality.
Artificial Intelligence will aid regulatory reporting jobs in a number of ways. A study by EY - “The dawn of a new partnership” - outlines the influence of robotic process automation in the reporting space. The benefits of AI will encompass:
It is likely that we will see roles evolving around AI - this could also prove to be positive as it will offer professionals the opportunity work on a variety of areas and be more analytical. As a consequence, we may see rates of retention improve with candidates getting the much desired wider range of work.
Whilst the long term effects cannot be precisely predicted, it is likely that there will be a knock on effect on headcount within regulatory reporting. With positions being taken over by robotics, the appetite to hire could reduce, and in the same vein, the pool of candidates could diminish as there will be less regulatory reporting jobs available. As a result of both, we could see competition for positions become fierce or professionals moving to other areas entirely.
The fact that time will be freed up by the implementation of AI will benefit professionals in certain roles; it will prompt them to understand wider business functionality and allow them to suggest areas where processes can be improved. In this sense, the more general positions are favourable over niche roles as the generalists will be better equipped to have an influence in other areas.
If you want to protect your position, increase your knowledge around systems and upskill in terms of becoming more business savvy. By taking on as much as you can (upskilling across all pillars, gaining a broader view of regulatory reporting and learning the landscape in its entirety), you will increase your value.
Going down a slightly different route, if you learn about AI within regulatory reporting and can display your understanding of it, this could set you apart from other professionals in the sector.
If you want further insight, read through our other posts that delve into different areas of regulatory reporting. Click on the links below.
If you would like to speak directly to a member of our team about available regulatory reporting jobs, do not hesitate to get in touch.