Banks battle tech giants for scarce AI talent

Financial institutions face mounting pressure to recruit specialists in regulation and risk management.

Financial institutions face increasing competition for workers with expertise in artificial intelligence (AI), data and regulation as demand for specialised skills grows, according to Deloitte.

The Asia-Pacific financial services workforce exceeds 39 million people, with more than 70% concentrated in China and mainland India.

Deloitte said demand for financial services talent is increasing as banks and other financial institutions compete with technology companies and fintech firms for skilled workers.

Financial institutions need employees with expertise in relationship management, dealmaking, regulation, digital technology, data and AI.

The competition is particularly strong in major financial centres, where large workforces are concentrated.

Tokyo has approximately 434,000 financial services workers, followed by Shanghai Pudong with 350,000, Hong Kong with 269,000 and Singapore with 205,000.

Deloitte said financial institutions face growing pressure to recruit workers with skills across business operations, risk management and technology.

At the same time, AI is changing how financial services employees work. The technology is increasingly being used to perform routine tasks, allowing employees to focus on decision-making and other higher-value work.

However, institutions also face competition from AI providers and hyperscalers, which are expanding their investment in infrastructure, data and talent.

The US accounts for an estimated 74% of global high-end AI computing capacity, compared with China's 14%.

Deloitte said financial institutions must decide whether to develop their own AI capabilities or rely on external technology providers as competition for resources increases.
The report also noted that hiring alone may not address workforce needs. 

Financial institutions increasingly need to retrain existing employees and develop skills that can be used across regional markets.

At the management level, Deloitte said executives need expertise across business operations, risk management and technology to respond to changing industry requirements.