As artificial intelligence (AI) becomes increasingly commonplace in Australia’s finance sector, over half of workers fear it poses a threat to their job security.
The Finance Sector Union (FSU) surveyed 2,200 finance workers, including financial planning employees, to understand how AI is being used in workplaces and the concerns surrounding it.
While over three-quarters of respondents said they are already using AI to some extent in their roles, it is clear that the employers are failing to communicate plans over its future usage with their staff.
Three-quarters said they are yet to have a discussion with their employer about AI and over half (61 per cent) said they have not received any training on it from their employer. This lack of preparation or training means 41 per cent do not feel ready yet to carry out their roles alongside AI.
Just 8 per cent of employees in the sector described their understanding of AI as “good”, while 38 per cent rated their understanding as either “low” or “very low”.
As a result of this, 61 per cent of respondents said they worry AI threatens their job security.
“As AI becomes more common across the finance sector and continues to transform the way we work, it has become clear that the voice of workers has been absent from the conversation around how these technologies will be used,” the FSU explained.
“Workers are worried about their jobs being replaced by AI, and these fears are made worse by the current information vacuum. Many finance sector roles are vulnerable to AI disruption and while workers know this, they do not have the information or the voice to contribute to the conversation around the future of their roles.”
When asked about the specifics of how AI would impact their work, there was an overwhelmingly negative response from those surveyed. The top three areas workers believe will face a negative impact are human interaction (73.6 per cent), job security (68.6 per cent) and skills becoming obsolete (65.8 per cent).
The union said it is “unacceptable” that financial institutions are investing millions into AI platforms while leaving their employees out of the conversation.
“The rapid pace of evolution of AI technologies, combined with the current absence of training, education and inclusion of workers, makes it urgent that employers step up and take a better approach.
“This lack of consideration for the views of workers shows what the FSU believes is an underlying contempt for workers and demonstrates employers’ prerogative to do what they like.”
To mitigate and resolve these issues moving forward, the FSU urged finance companies to engage workers in a consultative phase before, during and after the implementation of new technologies. In addition, offering accessible training on AI will educate and empower workers to fully engage with new technologies.
The FSU continued: “In order for workers to engage with AI technologies, they must feel secure in their roles. Employers have an opportunity to provide this security through making commitments that jobs will not be lost as a result of AI, and that workers whose roles are impacted will have access to the training and development needed to find new roles.”
Insignia Financial is a key example of how firms are harnessing AI, with the wealth management company flagging it is looking to AI as a way for its advisers to see more clients by reducing the manual processes.
“[AI] is absolutely a game-changing technology that we are embracing and we have embraced historically – we’re not new to this game – but will embrace more strongly to help humans do a better job,” chief executive Scott Hartley said last November.
As part of its 2024 enterprise agreement with the FSU, Insignia stated it would protect workers’ rights in the use of AI, ensuring that while AI can be a factor in the decision-making process, a human must always be the one to make the final call.
