Robots in finance could wipe out some of its highest-paying jobs
(Bloomberg) --Robots have replaced thousands of routine jobs on Wall Street. Now, they’re coming for higher-ups.
That’s the contention of Marcos Lopez de Prado, a Cornell University professor and the former head of machine learning at AQR Capital Management LLC, who testified in Washington on Friday about the impact of artificial intelligence on capital markets and jobs. The use of algorithms in electronic markets has automated the jobs of tens of thousands of execution traders worldwide, and it’s also displaced people who model prices and risk or build investment portfolios, he said.
“Financial machine learning creates a number of challenges for the 6.14 million people employed in the finance and insurance industry, many of whom will lose their jobs -- not necessarily because they are replaced by machines, but because they are not trained to work alongside algorithms,” Lopez de Prado told the U.S. House Committee on Financial Services.
During the almost two-hour hearing, lawmakers asked experts about racial and gender bias in AI, competition for highly skilled technology workers, and the challenges of regulating increasingly complex, data-driven financial markets.
Other comments from the hearing:
Kirsten Wegner, chief executive officer, Modern Markets Initiative:
Martina Rejsjö, head of Nasdaq Surveillance North America Equities, Nasdaq Inc.:
Rebecca Fender, senior director, CFA Institute:
Charlton McIlwain, professor of media, culture and communication at New York University: