Hiring and retaining data scientists is the top challenge the financial services sector will face this year, as companies seek to deploy artificial intelligence (AI)-enabled applications.
This is according to technology firm Nvidia’s “State of AI in financial services: 2023 trends” report, which details important shifts in the application of AI in banking, insurance, asset management and fintech.
The report is based on a survey of approximately 500 global financial services professionals on the trends, challenges and opportunities of accelerated computing, AI and machine learning in the industry.
The latest survey results paint a gloomy picture on how difficult it is for the financial services sector to on-board and retain data scientists.
“The competition for data scientists hasn’t receded from last year’s fever pitch. On the contrary, recruiting and retaining data scientists is now the biggest challenge to achieving a financial services company’s AI goals,” reads the report.
“For the first time in its three-year history, the survey results show recruiting and retaining data scientists is the number one challenge.
“Further supporting the hiring challenge the industry faces, 36% of respondents agreed that ‘my company has trouble recruiting AI experts; eg, data scientists’ − an increase of 80% over last year.”
AI deployments are a sharp point of focus globally, as businesses are increasing investments in the emerging technology to create a competitive advantage.
SA is also experiencing a huge shortage of data scientists. The 2022 JCSE-IITPSA ICT Skills Survey found growing demand for fourth industrial revolution skills, particularly in areas such as data analytics, artificial intelligence and machine learning, along with developers and cyber security specialists.
This week, SARS announced it is hunting for data science, AI-skilled talent. The tax authority is increasingly using data-driven efforts and machine learning algorithms to select cases of non-compliance, hence the need for additional talent.
Notwithstanding the data scientist shortage, Nvidia’s study shows AI applications are creating significant value in financial services.
The report reads: “But are AI applications driving real benefits to the companies deploying them into production? The survey results say ‘yes’ – resoundingly.
“In fact, 35% of respondents said the applications created operational efficiencies, and 20% said they reduced the total cost of ownership.
“When asked about how much their companies saved, 36% indicated they decreased annual costs by more than 10% – a needle-moving impact that can result in higher margins for the company.”
In addition, the report states: “Companies are increasing the velocity at which they deploy AI-enabled applications into production. Most use cases analysed by the survey are used by over 20% of respondents’ companies, and the percentage of companies that view themselves as laggards in AI fell significantly year-over-year.”
Share