The emergence of AI in finance has taken the entire world by storm, and Canada is no exception. Demand has increased rapidly for qualified MBAs with requisite skill sets to take up futuristic roles in sectors like fintech, investments, banking, and financial consulting. This comes at a time when 30.6% of Canadian finance and insurance companies report using AI, with virtual agents (35%) and text analytics (40.8%) being the most popular ones.
The importance of artificial intelligence for finance professionals cannot be overstated by Canadian MBA students. It is high time you learn more about AI transformations in the sector and the aspects that you need to work on to build a career in the industry.
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AI in Finance and Its Impact on Canadian MBA Careers
AI and finance are an intriguing combination, one that is reshaping the entire industry. Here is a quick comparison of conventional finance jobs and their AI-powered counterparts.
| Aspect | Traditional Finance Jobs | AI-Powered Finance Jobs |
| Main Focus | Reporting, analysis, relationship management, and manual data entry | Automation of all tasks, data-based insights, real-time analysis, and predictive modeling. |
| Core Skills | Accounting, financial analysis, communication, regulations, and decision-making | Machine learning, data science, programming, statistical modeling, and interpretation of AI output |
| Examples of Emerging Roles | Accountants, risk managers, auditors, investment bankers, and financial analysts | AI/ML specialists for finance, data scientists, AI trainers, and algorithmic traders |
Key Applications of AI in Finance
There are diverse applications of AI in finance and accounting, and related fields. Some of them include:
- Mortgage Financing- AI streamlines risk assessment and enhances customer experience. Virtual assistants and chatbots guide borrowers, while ML models predict borrower behavior, flag defaults early, and cut processing times in half.
- Investments- AI drives smarter portfolio management through advanced data analysis and predictive modeling. Institutions use it for real-time trading and forecasting, while retail investors get personalized advice from AI-powered platforms.
- Commercial Lending – AI automates loan processing and enhances credit analysis accuracy. Banks use AI to forecast market volatility, assess borrower creditworthiness, and identify high-risk applicants before issuing loans.
- Wealth Management- AI supports customized financial planning, automates investment decisions, and enhances client engagement. The benefits of AI for financial advisors also include automating routine admin tasks and enabling more personalized, data-driven recommendations.
Skills MBA Students Need to Thrive in an AI-Driven Finance World
With the advent of generative AI in finance, the time is ripe to gain some vital skills to thrive in the new-age ecosystem.
- AI-driven decision-making and data analysis.
- Financial modeling and risk assessments with AI.
- AI ethics and governance in finance.
- R or Python for data analysis.
- Excel and AI plugins.
- Data visualization tools (Tableau, Power BI).
- Machine learning frameworks (Scikit-learn and TensorFlow).
Challenges & Ethical Considerations of AI in Finance
Some of the key challenges and ethical considerations include:
- Bias and discrimination of AI algorithms if trained on such data.
- Lack of transparency and accountability.
- Security and privacy concerns.
- Decision-making autonomy and accountability.
- Algorithmic bias in trading.
- Skill gaps in finance professionals.
- Quality and integrity of data.
- Regulatory compliance.
- Systemic risks.
Canadian Financial Institutions Leading AI Adoptions
Reports indicate that Canadian banks are leading the way in AI adoption, surpassing their counterparts in APAC, Europe, and the UK. The Government is also focusing on AI commercialization and supporting entities adopting these technologies. Canadian banks are taking transparency and responsible AI seriously, building an ecosystem around these principles. The Evident AI Index ranks the Royal Bank of Canada third, while TD Bank is ranked ninth.
The banking sector is also doubling down on its AI workforce while adopting various technologies. CIBC is aggressively recruiting for AI-based positions, while BMO has unveiled an AI-backed assistant for insurance advisors. The Royal Bank of Canada has already launched Borealis AI, its research institute that creates solutions to tackle core issues in financial services.
Job Roles Emerging at the Intersection of AI and Finance
Several futuristic job roles are emerging at the intersection of finance and AI. Some of them include:
- Risk manager.
- Compliance expert.
- Quantitative analyst.
- Cybersecurity analyst.
- Financial manager.
- Data analyst.
Also Read: MBA in Logistics & Supply Chain Management in Canada
What MBA Students Can Do Now to Stay Ahead in the AI-Driven Finance World-H2
Artificial intelligence for finance professionals is indispensable today; this is not just in Canada but also worldwide. If you’re an MBA student, here’s what you can do to stay ahead in the competitive space.
- Develop AI-linked finance skills, i.e., modeling, data analytics, risk assessment, and financial analysis.
- Sign up for a course that teaches you the basics of AI, ML, and data science/analytics for the financial sector and obtain the necessary certification.
- Master tools like Excel, Tableau, and R Statistics for data visualization and modeling, along with financial analysis software and platforms like the Bloomberg Terminal for real-time data and insights.
- You can brush up your technical skills by gaining foundational knowledge of Python, TensorFlow, Power BI, FastAPI, NLP, Pandas, Streamlit, OpenAI GPT-4, and LangChain, to name a few.
- Work on projects like automated financial report generation, investment portfolio generation, and financial sentiment analysis to gain real-world experience.
Also Read: How to Land a Finance Internship During Your MBA in Canada
upGrad’s MBA Programs for Future-Ready Finance Professionals
upGrad offers several accredited and globally recognized programs tailored for finance professionals. They will equip you with valuable data-oriented finance skills while giving you exposure to the latest fintech trends and tools simultaneously. You can also expect hands-on knowledge of various AI tools and dedicated career support and mentorship.
These courses are all synced with the finance sector requirements in Canada and will undoubtedly help you achieve better professional outcomes. Here are some options worth considering:
- MBA Program from O.P. Jindal Global University
- Master of Business Administration from Golden Gate University
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FAQs on Rise of AI in Finance
Q: What is the role of AI in modern finance?
Ans: AI is reshaping modern banking and finance, enabling automated portfolio management, real-time analysis, faster customer experiences and support, and accurate credit risk assessments and lending decisions.
Q: What AI skills should MBA finance students in Canada learn?
Ans: Some of the valuable AI skills for MBA finance students in Canada include financial modeling, forecasting, data analysis, statistical analysis, and data visualization (Power BI and Tableau).
Q: Can AI replace finance professionals?
Ans: No, AI can only augment the capabilities of finance professionals, automating repetitive tasks, streamlining procedures, and freeing up more time to focus on personalized customer interactions and other high-value activities.
Q: What jobs combine finance and AI in Canada?
Ans: Some jobs that combine AI and finance in Canada include risk manager, compliance expert, data analyst, quantitative analyst, cybersecurity specialist, and more. From financial modelers and predictive analysts to algorithmic trading managers, several new-age job roles have gained popularity in recent years.
Q: Are there any risks to using AI in finance?
Ans: Yes, using AI in finance also has its share of risks. They include sensitive data security and algorithmic bias. There are also risks that datasets may be prone to such biases or discrimination that inform lending and other decisions.
