“So, what kind of impact is AI having on banking and Wall Street, and how might the resulting impact on entrepreneurs evolve in 2019?
Since 2015, we’ve seen the rise of AI-based products designed for the average consumer, like Betterment or Wealthfront. We’ve also seen the inclusion of AI-embedded into products that consumers are already using.
For many years, most jobs in the financial industry were considered irreplaceable by AI due to those jobs’ high-level critical thinking demands and complex nature. But now it’s estimated that 90,000 of the 300,000 current jobs in asset management will disappear by 2025, thanks to AI and automation.
If they then start selling equities en masse, the broader market will take notice, and begin to deepen the selloff. This could lead to a flash crash, or something worse, if not accounted for. And this isn’t hypothetical — flash crashes occurred in May 2010, April 2013, January 2015 and October 2016; smaller crashes have happened even more frequently.
In 2019, we’ll start seeing more banks and credit unions take advantage of this opportunity. Banking consumers, meanwhile, will get more dynamic recommendations for which financial products they should try; and they’ll be exposed to new types of advertising to direct their purchases.”