Financial Service Leaders Suffer from “Tech Anxiety” Despite Confidence in Digital Fit, Study Finds
A new study reveals that 94% of financial service leaders believe their businesses are “digital fit for the future,” but a significant portion still experience “tech anxiety” when it comes to artificial intelligence (AI) and machine learning (ML). This anxiety is caused by concerns over the rapid advancements in technology and how it affects their business operations.
According to the research, 18% of senior finance leaders have concerns about AI and ML. Additionally, developments in AI technology, including generative AI, are causing as much unease in the sector as cyber security, which is the most common cause of anxiety overall (29%).
The study also found that 34% of leaders attribute their anxiety about AI and ML to a lack of trusted data, while 41% believe there is an internal skills gap in their organizations. To address these concerns, 15% of finance leaders stated that they are investing more in these technologies compared to other parts of their digital estate.
Richard Neish, Global Chief Strategy Officer at Kin + Carta, commented on the findings, saying, “Security has always been top of the tree when it comes to tech anxiety for financial services, but the rise of disruptive technologies such as AI has caused a lot of apprehension in the sector. While the industry is digitally mature in many ways, it does not prevent leaders from being cautious when new tech enters the scene.”
The study, titled “2024 Leadership Priorities in Tech: Leading through tech anxiety in Financial Services,” is part of the larger “2024 Leadership Priorities in Tech” report by Kin + Carta. The report represents the priorities and concerns of 800 senior business leaders in the US and UK, including C-suite executives and senior decision makers in organizations with revenues exceeding £800m/$1bn.
The report highlights the threats and opportunities brought about by the increasing digitalization of financial systems and services, especially in the face of economic uncertainty. It reveals that 72% of leaders believe investment in digital transformation is critical or necessary for business success, with 24% emphasizing the need to optimize processes and increase efficiencies as a crucial data requirement.
As the financial sector navigates these challenges, Neish advises leaders to be flexible, leverage data, and align digital transformation with business needs in order to succeed.
Do you think financial service leaders should be more cautious about embracing new technologies? Share your thoughts in the comments below!
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