Description: At its height back in 2000, the U.S. cash equities trading desk at Goldman Sachs’s New York headquarters employed 600 traders, buying and selling stock on the orders of the investment bank’s large clients. Today there are just two equity traders left.
Source: MIT Technology Review
Date: Feb 7, 2017
The experience of its New York traders is just one early example of a transformation of Goldman Sachs, and increasingly other Wall Street firms, that began with the rise in computerized trading, but has accelerated over the past five years, moving into more fields of finance that humans once dominated. Chavez, who will become chief financial officer in April, says areas of trading like currencies and even parts of business lines like investment banking are moving in the same automated direction that equities have already traveled.
Today, nearly 45 percent of trading is done electronically, according to Coalition, a U.K. firm that tracks the industry. In addition to back-office clerical workers, on Wall Street machines are replacing a lot of highly paid people, too. READ REST OF STORY
Questions for discussion:
1. Do you feel that that Computerized trading and AI will make the financial industry almost a employee less industry ? Why or Why not?
2. Do you feel that Government industries are susceptible to this sort of computerization and AI to reduces Public service employees in Canada by a significant amount? explain
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While I do not necessarily feel that computerized trading and AI will make the financial industry an almost employee less one, I do agree that recent advances and increases in technology will absolutely decrease the number of workers needed in these fields. Even more so I believe that the classification and education required of people wanting to work in these fields will change drastically. Before, it seems as though the people behind the trades being made by large brokerages needed to have a strictly financial education where as now the most important asset would be knowledge in the field of the field of technology.
When considering the question of whether similar changes could occur in the various government industries, I think it is important to look at public service at it’s core which is the most important aspect of government. Because of this I believe it would be very hard to eliminate employees to the extent it is possible in other industries. While financial trading occurs more in the realm of brokerage businesses, often the government is responsible for services. Services industries seem to be the least susceptible to the growing pressures of automation because the tasks they perform could not be done by computers.
If there is one area of the government that could be most affected by changes like these it would be jobs that perform different data entry and data processing jobs. However considering that the majority of government jobs are unionized, it may be more difficult to just eliminate jobs than in other privatized industries.
In regard to this article, I do feel that computerized trading and artificial intelligence will make the financial industry almost an employee less industry, but not quite. Computerized trading and AI have reduced an extremely significant amount of this company’s workforce as Goldman Sach’s New York headquarters initially began with 600 traders and dwindled down to a mere two single equity traders remaining. This proves how in some cases, human services can easily be replicated and replaceable through technology and artificial intelligence, to be specific.
With this being said, I believe technology has its limitations as there is only so much a computer can do before its resources are tapped out. Without the physical mind and the human senses, numerous aspects and components of the working world would be obsolete as only a human can conduct and obtain these duties. In this case, this computerized technology is incapable of creating itself, thus needing computer engineers to physically build and create this technology in order to replace a job of others. Although 580 traders lost their jobs to this technology, 200 computer engineer jobs were created in turn to build and support these automated trading programs. Therefore, I don’t believe computerized trading and AI will wipe out the workforce as this technology is incapable of running on its own without any human support. Human services such as computer engineers, designers, programmers etc. are all necessary for this technology to function and even exist. Technology will always have a human component no matter how effective and useful it may be, as it’s incapable of being 100% independent and self-sufficient.
2) I believe AI financial systems are taking over human jobs companies such as Ques-trade are advertising lower fees and higher returns are forcing investors to switch to robot investment system. A simple example: If I wanted to buy GE, I’d call my broker who would execute the trade (algorithmic ally). The ‘buy’ decision is human, the act of buying is machine. Another way to look at it is top-down. Some decisions are made by machines, mostly quantitative hedge fund strategies. According to HFR, Inc., “quant” funds manage $932 billion globally. That’s a big increase compared to 10 years ago, but it’s only 1.3% of the total investable global equity market ($72 trillion) and around 1.2% of the total value of stocks traded, $77.6 trillion (source: The World Bank). This doesn’t include derivatives, FX or fixed income markets.
2) I believe it is balanced effort because there is always sacrifice for innovation and In case of public sector, it this it better to have automated services because it will result in quicker response data processing and efficient public services. I believe that innovation is not possible without trust. Trust and privacy are key to ensuring a strong, competitive economy and building a more inclusive, prosperous Canada. As our world continues to evolve and becomes increasingly more digitized, we must remain proactive, fostering a flexible environment where Canadians can seize the benefits available through the digital economy while maintaining a protective framework that supports our fundamental Canadian values. Addressing digital and data transformation means looking at complex policy questions with no simple, one-size-fits-all response and ensuring that our solutions are based on shared priorities to support our companies and citizens, with trust and privacy at their core. We are committed to principles to guide how data, trust and privacy fit into our plan to grow our economy through innovation and build sustainable growth by leveraging digital and data transformation as a nation, we can’t afford not to get this right.
1. I feel as if the large banks in the banking industry will eventually lead to almost employee less but there are just some things that humans can do that computerized software cannot. I believe the large banks will do anything that makes them money and the computerized systems are likely cheaper to run and more efficient so from a business perspective it makes sense that they would switch to computers but there will still be jobs that require humans.
2. I do believe that the government will begin to switch to more computerized software because similar to the large banks, the government is technically a business and they need to make money in order to increase their GDP. Shifting to computerized software will be cheaper and more efficient so it would be the smart business move to make.
The world of technology is growing faster than ever and AI is a soon to be way of life technology incorporated in the world. A lot of jobs in the financial industry will be taken over by AI depending on the nature of the job. I feel most jobs that include collecting data will be replaced. However, there are some jobs that just need a human working them, as they will lead to better and safer choices.
1. I do no think Artificial Intelligence is going to wipe out employees in the financial industry. The reason being, I believe this might actually be a phase. All the power and trust that these companies are putting on these AI’s and Computerized trading is quite scary because technology can easily fail. There can be blackouts, failed generators and even the backup of the backup generator and such could fail. By implanting al these trust in the computers and the technology, you can also lose the due diligence that a human could put into that role. Money is a driving force to better oneself, and the money they are using towards these computers, they could use to making sure that their trading will not fail.
2. I do not think public service employees will decrease, for the sheer reason that they will need someone to man these computers and artificial intelligence machines, even when they break down. The article mentioned, that one-third of Goldman Sach’s employees are computer engineers—this just means that the public sector of the Government of Canada will just hire more computer engineers or engineers in general. Artificial Intelligence and Computerization opens up the doors to new jobs, and this is shown with this article. It just shows that the public sector might change from what we traditionally know it as, and that is okay. It brings back another article that mentioned that over twenty percent of jobs for 2040 have not even been invented yet, and that just might be the future with this type of technology.
1. I believe certain aspects of the job will be taken over by technology. It will become an employee less industry as jobs will be cut, the thing is, is that human jobs will still have to stay. Like I feel like many stocks in todays age can be purchased online and people never go in to purchase them anymore, which obviously destroys jobs. But they still need someone hired who can monitor peoples stock buying and monitor the computer AI system to make sure its running properly. But it does cut tons of jobs like stockbrokers for example as AI and computers can now completely take over there job. From an employers standpoint by getting rid of employees and replacing them with tech they are allowing themselves to not only save money but have a more efficient system. Financial industry wise you are starting to also see stuff like banks replacing tellers as most baking is now done online or on you’re hand held device. Yes the banks still have people there so it doesn’t take away all jobs, but it does eliminate tons of them.
2. I feel like simple government jobs like reception and other jobs that can be replaced easily by technology, will disappear a bit. I think it also depends on the political party in power to be honest. I think a government like the conservatives would eliminate jobs to save money, and I think a party like the Liberal/NDP would create more government jobs that aren’t tech based, as both those parties love creating government jobs.
1. I feel that computerized trading and AI will make the financial industry almost an employee less industry. Nowadays, many organizations buy and sell stock on computerized trading. From the article, Goldman Sachs began with the rise in computerized trading, and they started automated currency trading. Using this type of technology is useful and profitable. However, it will decrease human capital because AI is always accurate, but human beings are not. For companies, it is great that saving costs, but they need people who have professional skills in the area of technology. I do not know if AI will make the financial industry or not because hiring people are risk oriented. Computer trading will increase in the future because of efficiency. I think that without human intervention these particular parts are beneficial.
2. I feel that government industries are susceptible to this sort of computerization and AI to reduce public service employees in Canada by a significant amount. Using AI is useful, and it leads to cost reduction. Saving costs are an important part in any government industries and organizations. AI is able to replace the traditional position because AI is able to do simple and complex tasks. However, human beings are different; it depends on the individual skills.I think that government industries will keep important positions, which means that they will not use AI for that position, such as soft engineer because they are valuable for government industries, and they are necessary when these industries use AI technology. So, I think that government industries will reduce human capital for simple works.
1.In my opinion I feel that computerized AI training will most likely reduce the need for humans in the financial industry. Why would we need humans when computers do the work faster, better and more efficiently. This reality of a workplace without employees in this work space is scary. I asked the question of why would we need humans in this workplace? The answer is because human employees have an effect on the business that can not be measured by metrics, which makes human employees intangible. Human employees will always be needed because to maintain and develop new financial technology. So human employee numbers may be reduced but ultimately will always be required.
2. I 100% believe that the government will become susceptible to this type of computerization because the government is always trying to reduce their costs at any level possible. Reducing human employee saves the government so much money in training, drama and hassle. While the government may fall susceptible to this type off computerization because people interacting with the government expect a certain level of service. With everything being computerized customers (constituents) will lose that personal touch and in turn may become frustrated. Ultimately the government may move towards a more computerized future which could save them a lot of money in the short term but they must be careful because the government is in charge of a lot of decisions which need human interaction. If the government is not careful they will alienate the people that voted them in.
1- I believe that computerized trading will make the financial industry almost a employee less industry because in the article it stated that four traders can be replaced by one computer engineer. This proves to us that one computer can do the job of four employees, and if computers take over it can be more beneficial on the cost side of things. Organizations are using computers today more than ever and they sell and buy stocks online. Although computerized trading will see a decrease in human employees there still will be some, because computers cannot do everything. Also for everything technology does there has to be a human looking over it.
2- I believe that some of the departments in the public service will see a decrease in human employees, but like everything there is some jobs that technology cannot take over. We as consumers see it every day that technology is beginning to be a huge part in the everyday lives of humans. Organizations that switch over to a more technical approach will see a huge cost at the beginning but investing into technology pays off in the long run when they have to pay less employees. Within the Government departments jobs like social work and highways are unable to be taken over by technology but then departments like finance have a higher rate of being taken over by technology.
1. Yes, as according to the article, that seems to be what is occurring already. While there will always be some aspect of human control and involvement, I think there is a definite trend towards computerizing previously human-run organizations and industries. Not only does this automation decrease labour costs, but it also increases the wages that those in top positions within this industry are able to make. In this way, not computerizing this industry does not make sense from a management and business standpoint.
2. I definitely do think that many government industries will be susceptible to this kind of computerization, leading to a mass reduction in public service employees. However, I think this will mainly be seen in work relating to accounting and finance. I am in public health and human resources and am not positive that these two departments/industries could easily undergo atechnological transformation, due to their heavy reliance upon human interaction and connection. What I mean by this is that public health workers will always be needed in order to build personal connections with people seeking help and support, this interaction not being something that can be replicated by a computer system. I believe very strongly that technology is the future. For this reason, while I do not fully believe it will replace people, the number of people employed in various industries will decrease. I believe any industry is susceptible to mass layoffs as technology becomes more common in the workforce. That being said, these industries will need to hire more computer engineers and experts in the technology industry in order to run and maintain these systems.
1. Absolutely not. The amount of articles that I have seen making it seem as though there will be zero jobs left in the finance sector is insane. While there are jobs that are being replaced with AI, there are almost the same amount of jobs being created in a tech space. Not only that but people are attracted to businesses with strong customer service and the businesses with some of the best customer service are operated by employees who have to make these decisions and hear out the complaints or issues that customers may have. This applies to the finance sector as well. Although jobs may decrease, I do not believe it will be by much and I definitely do not think that it will make the industry employee less. Even stock trading apps such as wealthsimple or QuestTrade need some form of customer service to them and they need app developers, coders, and other forms of employees.
2. I believe all sectors and industries are susceptible to this computerization and/or AI. As the world becomes more technological, these industries are bound to adopt this technology if it makes their operations more efficient. Although the Government is starting to adopt some technologies, there are many institutions and organizations, like unions, put into place to prevent the loss of many government jobs. With this, many government jobs revolve around the public sector which relies mainly on human interaction. The government also is criticized very harshly by mostly everyone whether it be which areas they cut funds from or where they decide to spend money. For this reason, it would be in their best interest not to pursue an employee less path.
1.I do believe that at some point the financial industry would become 100% technology based as many of the human skills in the financial sector can be programmed to do the more efficiently. There is no need for human factor when it comes to the financial field as oppose to the retail field in which it does need human interaction for in-store customer service. In that case, retail can’t be 100% technology based but can replace some aspect such as McDonald’s introducing self -serve till’s.
2. I feel it is possible and plausible for more jobs to be veered towards computerization and AI. The cost of adapting to such technologies are far more of an investment in the long term than having employees, not only would it reduce cost of having employees, it would decrease human errors, time it takes to hire an employee, and the industry turnover rate would decrease. There would be few employees to oversee the operation just not as many before the introduction of computers and AI
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1. I do believe that this has the potential to create an environment with a lesser number of employees, however I don’t believe that it will become 100% employee-less. Regardless of the amount of computerized and automated systems, there is always a need for someone to check up on these systems and a need for updates periodically. These jobs, as well as any others required such as implementation and damage control, will be needed for a significant amount of time in order to assure that these systems run smoothly. However, this is not to say that these jobs that have been mentioned are plentiful, thus creating a significant decrease in the quantity of employees in the financial industry. It is also not to say that these jobs will be crucial enough not to eliminate in the future if more technology continues to increase and improve.
2. It is a definite possibility that every industry could become in a way “taken over” by technology as the increase in technology systems is becoming more and more prominent in everyday life. With the increase in basic technology systems such as automated cash registers and computer systems, there’s no telling what could possibly become automated in the future as technology continues to rise.
1) This article sheds some light on the issues of computerization and AI overtaking the financial industry. Although there can be some complications with replacing human employees with computerized components. So far AI has helped increase revenues and dealing with the issues of the employee’s not committed to work. There has been a lot of consideration of what saves companies money and by having fewer employees to pay, companies are able to save more and that’s why they are able to make more of a revenue. Even though computerized trade and AI are saving industries money, employees will still be needed to overlook the work being done because computers can malfunction.
2) Yes, the government industries can be susceptible to reducing public service of the employee by a very significant amount. But we need to look and see how that will affect the economy and employment levels of the country. We need to take into consideration how much-computerized industry and AI will we allow to take over the human aspects of the industry. It could potentially raise employment in other jobs that require more human interaction then financial industries. The government could use a little update but also need to understand how much they are willing to change and the impact it could have on the economy.
1. After reading this article I am inclined to believe that computerized trading and AI will overtake the financial industry making it nearly employee less. As stated in the article where there was once 600 equity traders there is now only two. I believe investment banking will also see a decline in employees and a rise in automation. The biggest reason that I believe firms will do this is because it will reduce cost, because there will be so many less employees to pay. Firms will have to be careful though, some platforms are entirely run by software and close monitoring will have to be done to ensure everything is running smoothly. As long as automated financial decisions prove to be of the same quality as their human counterparts, I believe they will take over the financial industry.
2. While I believe that some public service jobs in Canada may be overtaken by computerization, I do not think that it will be by a significant amount. I think it may be likely for the financial side of government industries such as the Canadian Revenue industry to be become heavily reliant on computerization and AI. However, government industry is so broad and employ so many people I think it is impossible for the majority of them to be replaced with computers, many jobs will still require humanity to be functional. Government industries such as health care and law enforcement will always need human employees, unless of course highly sophisticated robots are invented, something I think we are still quite a way away from.
I believe that computerized trading and Al will definitely take over the financial industry. Some of the reasons that were stated in the article was how much of an outstanding part of their revenue is emerging from computerized financial trading programs and Al. The article stated that “nearly 45 percent of the revenue from cash equities trading come from electronic trades”. That being said , if 45 percent of revenue form cash equity trading is being overtaken form humans towards electronic trade than it is highly possible that the financial industry will became an employee less industry.
The government will in-fact catch up to having less employees within the industry. But they will not necessarily lay of as many employees as large corporations. As well as government industries have quotas and budgets that they must follow and AL can help them achieve their goals.
I feel like the computer trading industry still needs human intervention to analyze the stocks. The price change in stocks is due to new information can be disrupted by noise or less informed traders. Changes like revenue for the year or bad information about a company will all impact stock price. To automate the trading process may be beneficial. Information that is beneficial to traders can be acted upon quickly resulting in a gain or loss in on share price at a quicker rate. Employees are still necessary to analyze and provide insight into the stock trading industry. The fact that many stocks are international requires a tremendous workforce dedicated to working long hours. Employees may not always be willing to put in the hours to commit. AI will work to communicate information in the stock trading industry and made predictions, but humans are still needed to arrive at analysis and pick up what the computer has overlooked. I would be interested in the factors / information that the computer uses to arrive as its decisions.
The decision-making process becomes still used my humans as they must make the ultimate decision what to invest in. Employees may still be utilized to offer some sort of support. If the trading ground become a totally automated the decision process may change as well. Other factors may become relevant to stock trading that is necessary to be incorporated by a human element. I’m not sure of the balance here.
1. Yes, I do think that computerized training and artificial intelligence with affect the employment rates in the financial industry. With the increasing amount of systems being automated, this will definitely result in the minimization of jobs and personnel needed among companies in the financial industry. As mentioned in the article, companies like Goldman Sachs have started to automate currency trading as well as investment banking tasks which will in turn replace the traditional labour used in the past. Since we are moving towards a more technology-reliant future, this is to be somewhat expected as these systems may be more efficient and effective in the long run. The ability of these technological systems to cut costs is especially important to companies that may implement automation.
2. Yes, I do believe that the government industries may move towards this sort of computerization in the future. This is especially relevant as many industries are starting to implement and develop new technological systems to make tasks less costly and timely as well as more efficient. The automation of systems and the use of artificial intelligence can be helpful to almost all industries in one way or another. While the implementation of these systems may lead to a decrease in employees needed to work, the government still requires somewhat of a physical and traditional experience. Government systems can be changed somewhat to become more modern and online-based but is still an industry that requires some level of personal interaction and can not be completely digitized.
I believe that computerized trading and AI will continue to make the financial industry cut back on most of the traditional employees in the industry. I think there will be a shift in the type of employees that are required. As laid out in the article the traditional employees have been replaced with lesser amount of computer engineers and I believe this will continue to be the trend. If there is anyway for the financial industry to cut back on staffing requirements, I believe companies will jump at the chance for cost saving measures while still providing the same or better level of service to their customers.
I think that at this time there has not been a move by the government, at any level, in Canada to make the move to reduce a large amount of public service employees through the use of AI. I believe there has been a larger move in the private sector to increase cost savings this way; maybe down the road the government will look at implementing this type of technology. In my personal experience having worked for my local municipality there was always the move to hire more people rather than trying to thin the amount of public service employees. There is also a level of service the general public expects from the government and for the most part they expect this to be carried out by a public service employee. When there is a problem to be dealt with the public wants to talk to a real person because they feel there is a greater accountability by the public service employee and the government when they do this.
Do you feel that that Computerized trading and AI will make the financial industry almost a employee less industry ? Why or Why not?
Yes I believe that at it core trading is a game of analysis and that the people who could find the best metrics and correlating industry measurements were the ones that were most successful. There is not much of an art to trading. Any person element is removed and we are dealing with computers who trade for us at automated bid and ask prices. To become successful in trading will require access to larger volumes of data to better target metrics which out perform others. Peoples computational power is simply underwhelming at this point. There will likely come a time when Somebody finds an algorithm that generates cash daily or semi daily, and this will be either the dawn of new laws, or a closely guarded secret.
2. Do you feel that Government industries are susceptible to this sort of computerization and AI to reduces Public service employees in Canada by a significant amount? explain
To some extent, but less so. The government needs to be accessible to its people. and The person element needs to be present in government. For it is a structure of people ruling/protecting people. This is one industry that could justify its front end experience as remaining primarily staffed with people. However, perhaps the back end processes will become automated to catch up with industry cost standards. However, this will be a slow and unlikely change just due to the beaucratic nature of government.
I believe many areas of government will keep their public service employees, despite company’s like Mcdonalds moving toward customer service automation.– The services the government offers are more complex than a cashier, and the implications are higher than not getting a burger
I do think there will an increased amount of computerization in the trading industry, however I do not think it will become fully employee less. The article itself states they do have computer engineers on board. I think this means there will be less investment bankers in the team but there will still be maintenance members who take care of the computers in case anything breaks down or needs to be updated. The article also states that “rainmakers” will not be entirely replaced either. They will keep some staff that focus on human skills such as salesmanship and relationship building. However, I do think the number of humans will decrease significantly since Goldman has mapped out 146 steps to ensure savings and to make the process more automated.
I do not necessarily believe all government industries are susceptible to this sort of computerization because all though computers can do a lot, they cannot compete with the intelligence of an actual human. Many companies differentiate themselves on customer service quality by promising that real humans will solve any issues they have and not a bot. Every time I have an issue doing online banking I do not chat online with the helpers, instead I go to the bank to discuss my issue or I simply give them a call and ask to speak to a representative. However, I do understand they will make cuts in order to save money, but companies need to make sure they contain a balance, so it is not all computerized.
From this article I can definitely see how the financial industry could potentially be employee less in terms of the area concerning trading. The question on what will save companies the most amount of money is one that arguably has pushed the trends further towards AI and computer trading. If this is a tactic that is more efficient and saves the company time and money, then the option seems like the more sensible one. The one negative that this trend will bring is that countless employees who are skilled in the area will be let go from the companies or have to train in areas more geared towards computer programming. I do feel as though other areas of the financial industry won’t be affected as much since they still need the personal touch and customer relations. These areas mostly surround advising on multiple financial topics.
I do feel as though Government industries are more susceptible to this sort of computerization and AI because I feel as though governments tend to look more towards saving more money which can be done through computerization and AI. I think that we are starting to see this more and more throughout the public sector especially when the economy tends to take a turn for the worst. I don’t believe that there is going to be a drastic decline in the layoffs in trade of computerization and AI as I feel that there will be a ton of push back from that but I think that there has definitely been an increase in that number that is set to continue to rise in the coming years.
1. I do believe that in a few years that computerised trading and AI will decrease the amount if employees needed in the financial industry; however, employees will still be needed. Computer engineers will still be needed in order for the organization to continue to operate. Whereas, easier positions that do not take as much effort will be taken over by computers. The computers will be able to provide more efficiency and accuracy because humans tend to make mistakes. These mistakes can cost the company a large amount of money. Some individuals may also rather have a person as their financial advisor rather than a computer doing then work; therefore, employees will still be needed in these types of jobs to help provide customer satisfaction.
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I do believe the Government industries are susceptible to using this sort of computerization and AI to help decrease the number of employees they need to provide services within Canada. I feel the Government will choose to do this because it will create efficiency and accuracy by using computers rather than employees. However, the more computers that replace people the more people who are unemployed and increased the unemployment rate. If the unemployment rate goes up it is not a good thing because the Government wants to ensure the unemployment rate stays at a certain rate and is not extremely high. Organizations every day are advancing the technology they use but technology will not be able to completely replace every employee because there still has to position people can fill in order to keep the unemployment rate a certain level.
1. I believe there will be less employee on trading position in next few years, for example brokers. It will reduce traders but they will need more computer engineers. The computer haven’t take over all the position yet, but I believe one day there is no need for general position. Because financial market is different from other jobs. human Interaction isn’t that important. So, technology with more efficiency and accuracy will take over.
2. Without a doubt, computerization will affect all the economy and industry. Every industries will computerization in the future. Depends on maturity of the technology, there is a sequence to computerization. A lot of government in industries are about public service, so it is necessary that human interaction involve in this service. So I believe government will have less affected. But it’s hard to say in the future. In recent, government industries will not reduce workers.
1) I do believe that A.I and computerization will eventually decrease the amount of workers needed in the financial industry but dont believe that it will ever be completely automated. The decrease will happen since trader programs and algorithms are so advanced and bring it large amount of capital, it allows for firms to reduce the amount of human error that is produced, costing them thousand/millions of dollars. It makes sense on a business scale, all businesses want to cut cost in any way possible and wages/ salaries is a big portion of that. With that being said I can’t imagine an employee less financial industry because many people around the world want advisors and consultants to help with their finances and that human touch cant be automated. People want to sit down with an expert and go over their finances and that portion can never be computerized.
2) With the increase in technology I believe that a lot of industries could see a potential decrease in certain jobs including the government. It makes big picture sense to do cost savings in that aspect, alternatively I don’t think there will be a decrease in physical jobs numbers in the government but the jobs will be different with the rise in technology. They will be geared towards technology and IT and that will keep the economy afloat. When dealing with the government there needs to be interactions that are not automated. You need to be able to speak with people if you have questions and that is something I dont believe will ever change. Ultimately, I can see a decrease in the jobs available currently because they have altered them to fit the rise in technology and will be geared towards that.
Okay, here’s the thing; Computerization is not the issue in this article. It’s a symptom. As a marketing student, it’s been ground into me that as a company you need a strong understanding of your “why”. Why are you in business, what is your goal, what do you want to accomplish are the questions that you have to start within business. The finance industry doesn’t have a super-strong ‘why’. Other than, make profit, and do so as efficiently as possible. Of course, with this as your core philosophy, you are way more likely to cut as many people as possible in order to consolidate wealth in convenient locations i.e. the pockets of top managers. Starting with that ‘why’ of profit at all cost, because “being in business is about the bottom line” or “cash is king” is going to be the motivating force behind unethical use emerging technologies.
To me, the idea of working on a trading floor packed with 600 cubical sounds like hell. It’s an environment that seems like it would lead Edward Norton to start doing things I can’t talk about. Maybe if we got creative and tried to find purpose in something other than climbing a corporate ladder this industry would have begun using that manpower in unison with this new technology to begin improving the environment around them we wouldn’t have a shrinking public service sector. We’d have one that was evolving and developing our economy. One that doesn’t exacerbate the wealth inequality but provide equal opportunity for those 600 people to contribute to society and find their ‘why’.
1. With the advancements that are being made in the world regarding the innovation of technology and the automation process, I believe that in a computerized trading and AI will for sure eventually lead to an employee-less industry and as a result students like me and many other finance students across the world will be in trouble when it comes to looking for a job post-grad. This will only leave positions for senior ranking employees who would overlook the machines and ensure that they operate smoothly. From a company standpoint, it also makes a lot of sense to become more computerized because that way they can cut costs on paying employee salaries, which are usually high for the field of Investment Banking. Another point mentioned in the article also how much revenue is generated as a result of computerized financial trader programs and algorithms alike.
2. I also feel that Government industries are susceptible to this sort of computerization and AI because it is the way our world is going, where everything is automated. I think with a government role is less likely to become so automated that it will reduce Public Service employees by a large amount, but it will for sure led to some people losing their jobs. Sectors like healthcare reply on human interaction, for example hospitals need nurses, but the secretaries who take down your information at the front desk can easily be replaced by a computer system. I think it really depends on the field.
I do believe that the financial industry will continue to shift to a more Technology based industry. The finance industry has always been heavily reliant on technology, and I not think the owners of the company would restrict this from shifting more. Because it will work out in their, and the company’s favour. As stated in the article they will have less employees to share profits with and also save money by lowering expenses by not having to pay as much of a salary expense. This is a win win for the company’s and top level management ( as it is in most info system implantation cases). This does concern me on a personal level as I am a finance major myself. To lower this concern I am planning on learning more about these technologies as they may need employees to run this aspect of the company.
I also believe that the government will be able to make their work more efficient through out computers. I feel as if they have done this already, but nothing is stopping them from continuing to do this. A reason why they may not continue replacing people with technology is to keep the unemployment rate lower. I also feel as if there are a lot of occupations in the government that cannot be replaced by technology.
1. I feel that computerized trading will not make the financial industry an employee less industry. As the article talks about computer engineers being hired in place of financial traders, I think that the industry is simply changing. Being a financial trader soon will revolve entirely around technology (if it doesn’t already). I think that the industry will involve more focus on learning technology to develop better financial trading information systems.
2. I feel that government industries will eventually move to more computerized and AI resources. Labour is a large expense for the Canadian government, and investment in an automated system would allow for lower expenses. Taking out the human element could also improve response time to citizens by removing the human element, however for things like emergency services, human interaction is required and expected. I foresee public services achieving some sort of hybrid between full computerized AI and human-run.
Yes, I believe as more technology is developed and optimized for the industry the financial industry will eventually become employee less. Of course they will need employees to run the technology and maintain it so people in the industry will require a different set of skills for employees. The article mentioned that 1 computer engineer can replace 4 traders, which means that Goldman is able to reduce his staff drastically. It seems reasonable to assume that the rest of the financial industry should expect those same reductions as time passes. As technology is less costly and more efficient, it seems as though people should expect technology to replace positions. Of course in the financial industry that will always be a need of human interaction so we can expect complete depletion of employees but certain aspects seem more susceptible to cuts.
Yes, but only to a certain extent. The government can benefit from the implementation of certain computer systems but I think there is still a demand for public service employees and I do not expect that to change for some time. As government employees that are protected with unions so cuts to positions to replace them with technology will be much harder. For now I do not expect major changes to the public service sector but when more people are ready to accept technology there may be more changes.
1. Yes, I do feel like computerized trading AI will make the financial industry see less humans in their industry. With the quick advancements in technology and automation, I can see where there will be a problem between human capital and AI capital. AI’s have the capability to obtain information faster, efficiently, and at a cheaper cost than humans. The cost of them could be equivalent to a handful employees or possibly even cheaper. So, there is no way to say that humans are safe from losing their jobs to AI in the financial industry. Fortunately for us, I believe that this will not happen right away, as there will always be a need for human emotion, intelligence, and intuition to deal with the financial industry. AI’s can probably identify an algorithm or pattern in the economy/stock market. But they will never have that human connection, to know why people decide to make the choices they do.
2. Yes, of course! Government industries have budgets and quotas they must stand by. An AI can definitely help them achieve these targets. It’s unfortunate, but it is the ugly truth. Now I am not saying that it will replace every employee, just a majority. Those who are deemed susceptible to losing their jobs are evidently all level of employees no matter their seniority. I do wonder what the future looks like for everyone, will AI eventually replace us, or will we find a way for the both of us to coexist in this day and age.
1. Personally I think that almost all of Computerized Trading and Al will eventually be almost an employee less industry. Technology is without a doubt advancing, and advancing at an alarming rate. If almost half of the total revenue from trading comes from electronic trades, there is no doubt in my mind that with the rapid advancements in technology, that eventually the computerized trading will me employee less. The reason I said “almost” employee less is because there will still require very few employees for setting up equipment, maintaining equipment, and disposing of old technology.
2. I don’t think the government is as susceptible to this sort of computerization and AI because of the loss of human contact. In sectors like healthcare, human exchange, contact is extremely important, more important than in other industries. I feel like the feedback from personal exchange is much more positive than feedback from AI operations, such as companies trying to assist you through a web page.
Computerized trading and artificial intelligence have a significant impact on the financial industry. The article mentioned, within a five-year period out of 600 workers only 2 were left and this is an ongoing trend in the big companies. Automation has surely impacted the economy, but it has also created opportunities. People who are creative and innovative would probably be stuck in their jobs. But let’s consider how many new innovations we have had in the past few years, and I think we can give some credit to unemployment (the irony of the story).
If 45 percent of revenue is made from the electronic trades, as mentioned in the article, then there is a potential chance that Canadians are also susceptible to computerization and AI regarding Public service employees in Canada. If we were to make the changes, we might save quite a bit of taxpayer money because we will have fewer people to pay but in the long term, it will have a negative impact on the public system. If the public service employees in Canada were to depend on AI, then the work dynamics would change vastly, and it would impact the lives of people significantly. For example, an individual needing support and help would want a human figure to talk to or share their feelings to, but a robot. It is in our hands what path we want to take as a country and how much dominance we want in regards to using Artificial intelligence.
1. With all the development that technology brings with it, there is no doubt that having such a dynamic environment will have various impacts on how firms do business. Keeping this in mind, the use of computerized trading with AI can have a negative impact on the employment sector. The use of such advanced technology increases the productivity as mentioned in the article, where now because of this technology firms only need one computer engineer to do the job of 4 brokers. This means firms in the financial industry will hire less people to do the job. However, I do not think that there will be a complete elimination of employees in this sector as there will always be some sort of need for human element that will be involved in the process. The financial sector will have less employees but will not be completely employee less.
2. I do not think that Government industries are susceptible to this sort of computerization and AI to reduce Public service employees in Canada by a significant amount. This is because of the issues that are connected to the economy. The government is responsible for economic stability and by using such technological advancements and hiring less employees, the government will be contributing towards the unemployment rate in Canada which means that governments would now have to pay EI (employment Insurance) to those who cannot look for another job. In addition, it will affect the GDP of the country as individuals will not be able to afford goods and services since they will have no sort of reliable income. Moreover, having some sort of human element is vital to the success of service that is provided. Loosing this element will put the government at a disadvantage as not all technologies can handle special case issues like for instance disability cases where you need to serve someone who is blind, dumb, or deaf.
I certainly believe that in due time, computerized trading and AI will leave the financial industry with little to no employees left. There are multiple industries out there that are trying to reduce everyday costs. One of the ways they can reduce their fixed costs is to lay off employees and bring in computers and AI that are potentially more efficient and accurate. Employee salaries take up a large amount of a company’s revenue; whereas when and if they bring in a machine, costs will be reduced significantly. However, I believe that that essence of human contact will be lost that largely contributes in customer relationship management. Having CRM enforced in a company is a way of ensuring that customers stay with the company and overall contribute to their satisfaction. I don’t think that replacing employees with computers and AI will be 100% beneficial, however, it is a possibility to include both aspects.
I don’t think so because in other non-public service-related jobs, if employees are laid off due to the use of computers and AI, they are going to turn their heads toward the government to help them out. It would be unjust to a number of employees to not be left with any work at all. It is the duty of the government to care for its citizens, especially when they are left with no jobs. I believe that it would be highly unethical and unfair if the government did resolve to AI. I also think that the government is smart enough to think for the economy and the country in the long term and therefore, I don’t think that they will reduce public service employees by a significant amount.
1. If you look at specific companies such as the one highlighted in the article, its clear to see some industries are using less human-work-force year to year. Just because there are less jobs in some areas, doesn’t mean this will make it so many people will be without work. In my mind this creates opportunity for more innovation in newly developed field. Sure most people will need more education in order to make an ideal living, but I don’t necessarily see a problem with that. Some jobs that require human emotion/ emotional care should be left for humans (examples: elderly care, some medical fields, marketing, HR, security), but technology that deals with non-emotional aspects of work should not be seen as evil (Accounting). In most cases tech/AI humans should be working together instead of competing.
2. Not necessarily to reduce public servants, but to expand their abilities to better the community. For example last summer I worked in a town office during property tax season, so for a week or two, I was sitting at the front counter all day receiving cheques and eft payments as people payed their taxes. My preliminary job for the office was records management, but because so many people refused to pay online, I was tasked with assisting them. If they were forced to pay online through a database/AI system I could have gotten more organizational work done. Same with my co-workers who had to pause what they were doing in order to take on more people at once, they could have perhaps planned more programs, and been more productive in general.
Yes! “Goldman Sachs has already begun to automate currency trading, and has found consistently that four traders can be replaced by one computer engineer” Although this is a bad thing for the bankers and traders losing their jobs, from the company’s point of view they are saving money and increasing efficiency. But if this is the case then more people will be laid off since technology is taking over with better skills that what we as human can deliver.
I do believe the government will slowly but surely catch up to having less employees which given the situation that the world is going makes sense. But i don’t think the government will lay off as many employees as other financial industries. Also the government does help the unemployed citizens so introducing more robots/computers will increase the unemployment rate which wouldn’t be the aim of gove.rnment industries
It is no surprise that the finance industry has moved away from a traditional approach, where buying stocks and securities required a broker to ensure the transaction was successful. The broker would also charge a high fee for the transaction which made it the securities more expensive to purchase. A computerized trading approach removes the broker from the process making the transaction less expensive as well as provides almost all the features and services that a broker would provide. I think that the financial industry will computerize, but it will be difficult to go “employee less.” It is always important to have the human element in a business because people can easily react to problems and solve them accordingly. Computers may sometimes fail to solve some customer problems which can frustrate customers. There will also be a need for tech savvy employees to maintain computer systems. Additionally, there will be a demand for employees with analytical skills to analyze and report data for better decision making.
Yes, to an extent government industries are vulnerable to reduce the number of employees in the public sector. However, this will not happen easily due to protection from unions. Unions will seek to negotiate collective agreements to protect their members. There will still be a demand for employees in other departments for whom the unions will fight for. But in my opinion, majority of the employees may be laid off.
Seeing that in just seventeen years Goldman Sach’s New York headquarters went from 600 employee traders to two shows that the industry has already started the move from human-powered work to dependence on artificial intelligence and computer automation systems. As the article states, nearly 45 percent of the revenue from cash equities trading comes from electronic trades which also highlights the fact that the automation aspect is becoming more and more prevalent in this industry. Even the machinery used in the industry such as those that go on the streets have been replacing employees and the same goes for the bank machines that replace bank tellers are leaning more and more to the dependence on these technologies. For these various reasons I do believe that the financial industry will almost turn into an employee less industry. Although many people may think this is a bad thing, personally I do not believe that it is. Even though the lack of available jobs is a worry; the automation and use of artificial intelligence is a major benefit as it comes with accuracy and ability to be worked much harder than that of any human brain. Examples of this accuracy and intense working capabilities is the ability to run algorithms and work around the clock finding and fixing bugs and computing every-day calculations faster than ever. However, the employees that are fired due to automation – some of these losses are balanced out by the addition of computer engineers. As the article states four traders can be replaced by one computer engineer so although there are more losses associated with the change there are still employees in the industry cementing the fact that although the industry can greatly reduce its level of employees it will never fully go employee less!
1. Yes, I do believe that all, or almost all Computerized trading and AI will make the financial industry almost an employee less industry. The reason for this being that as the article states “nearly 45 percent of the revenue from cash equities trading comes from electronic trades”. If 45 percent of the revenue from cash equity trading is already being overtaken from human to electronic trades, then it’s possible that electronic trades could make the financial industry almost employee less. However, this being said, because it’s computerized technology, they will still need employees to supervise the machines. With this, some jobs could end up being created within the industry.
2. Government industries, along with others, are susceptible to this sort of computerization and artificial intelligence to reduce Public service in Canada. I don’t think it will decrease by a significant amount. The reason for this being that with having possible jobs being created due to the fact that artificial intelligence needs to be monitored in case of a malfunction. I don’t think the citizens would be happy if they had to talk to a computer instead of an actual human in the Public service sector. Although some may get cut, most jobs in the Public service sector will be maintained due to human to human contact in the government.
I don’t necessarily believe that the computerized trading with AI will make the financial industry almost an employee less industry however I believe that these industries will continue to need and use less employees. The financial industry will not become an employee less industry because there are many other services that financial institutions provide that require humans. With that being said, people need human contact and if something is going south it is important to have a support desk of humans who are able to assist others. Financial firms also need to keep a fair amount of people around as those in charge will not be around forever. Although I believe this, financial institutions may be thinking the opposite. Since the primary goal of an organization is to make a profit, many firms may choose to cut jobs in order generate more revenue. There is also ethics involved in business and I believe that it is wrong for these large investment banks to do so mainly because the executives as stated in article are making upwards of $700,000.
As I stated previously, I don’t think that Government industries will abuse this sort of artificial intelligence to reduce public service employees because of human contact. Social interactions and human contact is extremely important for our mental health. I’ve had many experiences with organizations whom try to assist you through their web page based on frequently asked questions rather than providing a phone number or online messaging service and it is a very frustrating experience.
I feel that the computerized trading and AI will certainly make the financial sector more competitive for the people out of university looking to join the financial industry for lower level jobs, but I feel that the experienced workers expertise will always be a necessary commodity for businesses in the industry. I think that the automation will also open up other lower level and lower paying jobs such as technicians to take care of the Artificial Intelligence. It is only ethical for the businesses to continue to be more cost effective and efficient in their operations while still being a benefit to society; which job creation plays a huge role in. I find it hard to believe that businesses will completely faze out human employment when the economy depends on the masses; when people don’t have money, they don’t buy anything which means that as peoples welfare decreases the businesses welfare will decrease as well. I feel that government industries will implement this sort of computerization and Artificial Intelligence for the same reasons that financial industries will; cost and accuracy. In government industries it is far more important for information to be one hundred percent accurate which Artificial Intelligence will undoubtedly be better at. Although, I do believe that governments, especially in first world countries, will have a much harder push back from the public in the sense of lost jobs. For this reason, I feel that governments will have a march slower transition into AI than that of financial industries.
1. Yes I do believe computerized trading and AI will make the financial industry a employee less industry. The only positions will be high ranking senior positions that basically overlook what the machines do and a very large suit of programmers who keep their the machines running. As mentioned in the article, atomization will replace more than just minimum wage jobs. Companies might even jump on technology that replaces higher paying employees quicker than the technology used to replace minimum wage workers. End of the day. The senior officers who implement these technologies will be the one receiving a huge bonus.
2. I do think government industries are susceptible to this sort of computerization. Not to the same extent we see from large corporations. I think more people are onboard with more computerization with the government than they are with businesses. Anything that could result in lower taxes usually makes people pretty happy. And for example the DMV is always such a slow and painful process, the ability to speed that up would make people very happy. It definitely would not be be good for the economy to see how service industry continue to be replaced. The government but be less susceptible to this if it has a large impact on the economy. No political party’s wants to be known as the party that got rid of jobs especially such a large portions like services in Canada.
1. In short, No, I do not think that the financial industry will ever be completely employee less. Although computerized trading has greatly accelerated from year to year, and will probably continue to do so as more technological advances are made, it also creates jobs. Automation will create new jobs, as the old ones become eliminated. In fact, automation will likely create more jobs than it eliminates. The AI systems will need employees to manage them. New financial industry jobs include positions such as Cryptoforecasters, Trust officers or Self-driving finance engineers.
2. Every industry, including the government , will be susceptible to this sort of computerization, but I do not necessarily think that the public services in Canada will be reduced by a significant amount. As mentioned in the above paragraph, new technology creates new jobs, as well as eliminating some of the old ones. Employees jobs will change, to accompany for the new technology, but they will still have jobs. For example, a toothpaste company lays off 10 factory workers to replace them with bottle-capping machines. Even though the workers will not be screwing bottle cap lids on to toothpaste containers anymore, they will still have a job conducting the maintenance of the new machines.
Q1. In noticing that the financial industry has started to become more and more automated I believe there are a few sectors of jobs where computer technology and automation will not be able to thrive such as, financial planners. Part of the experience of planning a future Is sitting down with a human that understands what you are budgeting for who you are saving for and what you will need some of these personal experiences would not be the same face to face with a computer instead of a human. For these reasons I would conclude there will always be a need for some parts of the financial industry to remain
Q2. Cost wise I believe it would make a lot of sense for the government to find ways where they can substitute jobs with cost-effective technology and automation but I also believe that when it comes to government there always needs to be some sort of face that you deal with. I think if public sectors because less personal there would be a lot of discourse in the way people would go about complaining about the government. Which in all seriousness could be a good thing.
i think it won’t make the industry employee less as you still need people to make AI and to explain financial acumen to investors. Every industry is susceptible to this change. The public sector won’t be an exception.
1. I believe that computerization will eventually take over the financial industry for many reasons. One being mentioned in the article about how much of a significant portion of revenue is coming form computerized financial trader programs and algorithms. Companies are always looking to cut costs whether it be in resource management or in this case here employee wages by replacing people with computers companies will be able to utilize that money in other aspects for the better of the company as a whole. Another point is that finance is a lot to do with counting and managing money which there can be a algorithm or program made to do such a simple task but ill be it there are some aspects where human interaction can be useful.
2. I feel in today’s day and age every industry is susceptible to having their jobs being taken from them by computers and machines because of budget cuts and smarter service. But in the case of government i feel that since it has to do so much with dealing with the public and public issues that i feel that it is a more safe industry. I don’t think that citizen would not be very confident with their government if a computer was running decision making and even day to day operations. I feel that human interaction would be much more appreciated in this industry. Plus i feel there will always have to be a employee or employees within a IT department to keep the computers running because you can never count on computers fixing computers.