In a recent interview with Bloomberg, billionaire bond fund manager Jeffrey Gundlach predicts that the machines will not replace humans in the financial sector.
Gundlach's advice for beating the machines is rather comical. He says, "work hard."
The Lay of the Land
Machines and the financial sector are especially suited for one another. The need for quickly finding pertinent historical records, lightning fast transaction speeds, and the rise of digital currencies are meshing machines deeper and deeper into our financial lives.
The use of AI in loans and underwriting has seen a growing popularity in the last decade as apps such as Docusign work to displace the need for meeting with your bank.
Along with dotting your i's on a new home mortgage, machines are replacing humans in helping us choose financial products.
Amazon and Netflix can already predict what garden hose or movie we might enjoy better than any human expert. Want to find that high paying dividend stock or purchase it through a broker with no fees? Siri is in the palm of your hand for both.
The Blockchain
Blockchain is a hot topic in finance because it has numerous applications. In the cases of Ethereum and EOS, we begin to fathom the possibilities of coding every aspect of our daily lives through the "world computer."
"Code is logical. Code is hackable. Code is destiny. These are the central tenets (and self-fulfilling prophecies) of life in the digital age. As software has eaten the world, to paraphrase venture capitalist Marc Andreessen, we have surrounded ourselves with machines that convert our actions, thoughts, and emotions into data—raw material for armies of code-wielding engineers to manipulate" -Jason Tanz
Developers have a rare talent in a world that increasingly needs their skill set.
The disparity between the need and the available humans to problem solve looks to have an exponential effect on how much we entrust to AI.
Just as we are looking to automation in the workforce to alleviate costs and improve efficiencies. Blockchain tech is driving the shift to smart contracts for handling financial details.
Conclusion
Will machines replace humans in the financial future? In most cases, I think they will. One question I have, is will AI start to do the coding for us?
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Image Sources: 1-2-3
Sources: Bloomberg
Tanz quote