The Limits of AI in Financial Services

• URL: http://arxiv.org/abs/2503.22035v1
• Date: Thu, 27 Mar 2025 23:04:11 GMT
• Title: The Limits of AI in Financial Services
• Authors: Isabella Loaiza, Roberto Rigobon,
• Abstract summary: AI is transforming industries, raising concerns about job displacement and decision making reliability.<n>EPOCH framework highlights five irreplaceable human capabilities: Empathy, Presence, Opinion, Creativity, and Hope.<n>Challenge is ensuring professionals adapt, leveraging AI's strengths while preserving essential human capabilities.
• Score: 0.0
• License: http://creativecommons.org/licenses/by/4.0/
• Abstract: AI is transforming industries, raising concerns about job displacement and decision making reliability. AI, as a universal approximation function, excels in data driven tasks but struggles with small datasets, subjective probabilities, and contexts requiring human judgment, relationships, and ethics.The EPOCH framework highlights five irreplaceable human capabilities: Empathy, Presence, Opinion, Creativity, and Hope. These attributes are vital in financial services for trust, inclusion, innovation, and consumer experience. Although AI improves efficiency in risk management and compliance, it will not eliminate jobs but redefine them, similar to how ATMs reshaped bank tellers' roles. The challenge is ensuring professionals adapt, leveraging AI's strengths while preserving essential human capabilities.

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