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Is AI Taking Over the Work of Financial Analysts?


Task: Within 1200 words (about five pages), and drawing from a variety of sources, essay on the topic "Are financial analysts' jobs being replaced by artificial intelligence and machine learning"?


The current financial analysis essay discusses the function of financial analysts, including their involvement in a variety of financial planning, analysis, and decision-making processes. Financial analysts must create a variety of budgets and forecasts as part of financial planning in order to estimate the financial health of a project or business well in advance of the year's beginning and compare actual performance to the predicted numbers to analyse overall financial performance.

In the present period, a modernised business world is expanding quickly due to technological improvement. The employment of artificial intelligence in many business operations has developed into a cornerstone for achieving organisational performance, according to the research of essay writing services on financial analysis essays. Machine learning and AI have assumed a central role in corporate organisations around the world due to the increasing relevance of accurate and timely data (Jordan & Mitchell, 2015). Artificial intelligence has presented enticing possibilities to handle activities with greater accuracy and in real-time in the financial sector (O'Leary, 2013). It is true that financial analysts' jobs have been largely replaced by machines thanks to artificial intelligence (AI), which allows robots to perform tasks that would otherwise need physical labour. The primary duty of a financial analyst, as described in this essay on financial analysis, is to evaluate the suitability of any project or company based on its financial performance. The analysis calls for extensive professional skills (Adhikari & Agrawal, 2014). Other industries are integrating their business operations with AI, not just the financial industry, particularly when it comes to analysing the financial success of the organisation overall or a specific project.

Artificial intelligence enables the speedy completion of all calculations, analyses, and other associated tasks that previously required human experts in more conventional situations (via automated processes) (Krollner, Vanstone & Finnie, 2010). Due to manual interaction, the reports produced in the conventional analysis process had a larger likelihood of error; however, with the use of tools incorporating artificial intelligence, the likelihood of error has almost been eliminated. As a result, the reports generated by AI tools are thought to be more accurate. According to research on financial analysis essay, during the past few years, virtually every industry, including manufacturing and marketing, has witnessed a tremendous increase in the use of robots, digital assistants, and other smart equipment (Dirican, 2015). The role of financial analysts has been impacted by AI's ability to make it fairly convenient to simulate human thought processes and behaviour by utilising a variety of learning algorithms (Kou, Peng & Wang, 2014).

Financial analysts could enter a new world where their routine work will be taken over by machines, and they will need to conceive of analytics strategies in novel ways due to the availability of affordable hardware and high-level software as well as numerous revolutionary AI technologies like the Internet of Things, Big Data, Cloud, etc. (Sohangir, Wang, Pomeranets & Khoshgoftaar, 2018).

Although it is true that artificial intelligence has replaced the work that financial analysts once did, this does not mean that their position in an organisation has been eliminated as a result of AI. Instead, AI has aided financial analyst roles by giving them correct data in real-time so they can perform the in-depth analysis component (Baldwin, Brown & Trinkle, 2006).

One of the primary applications of machine learning algorithms in the financial analysis process outlined in the financial analysis essay is their capacity to evaluate huge amounts of transactional data and to identify questionable transactions, or transactions with high-risk scores, in real-time (Arnold, 2018). When artificial intelligence was not yet a concept, financial analysts still performed these tasks manually using tools like advanced Excel and other analytics tools, but because of manual intervention, the data results could not be as accurate as needed to make informed decisions, and these tasks also required more time to complete (Daniels & Caron, 2009). Human experts' incapacity to analyse the data and create the report in real-time frequently prevented their reports from serving their primary function. The inaccuracy of the input and the delay in its creation for analysis can result in a hazy analysis that causes firms to make bad decisions (Cath, Wachter, Mittelstadt, Taddeo & Florida, 2018).

Without a doubt, technology is essential for automating the everyday activities of financial analysts and for identifying data trends in enormous datasets, ensuring that financial analysts retain their importance in businesses (Soufian, Forbes & Hudson, 2014). The real truth, as mentioned in this article on financial analysis, is that the function of the financial analyst is expanding and that they will be given more responsibility—responsibilities that robots cannot carry out using logic and algorithms. Instead of wasting time collecting data from various sources for financial research, time will now be spent on high-end tasks, including in-depth data analysis, exercising rational judgement based on data supplied by AI tools, and evaluating quantitative algorithms (Bertone? che & Knight, 2001). The ability of humans to make decisions still outweighs that of AI. Additionally, it is acknowledged in this example of a financial analysis essay that quantitative models are generally more advanced than human experts, but it is undeniable that they are better able to identify arbitrary data, such as future trends based on microeconomic and macroeconomic conditions, which are not taken into account when using artificial intelligence tools for financial analysis. Additionally, when results are ambiguous and highly subjective to a higher degree of unpredictability, AI, machine learning, and big data demonstrate less effectiveness (Richins, Stapleton, Stratopoulos & Wong, 2017).

Future financial analysts' ability to perform their jobs effectively will be largely dependent on their ability to continuously learn new patterns, analyse data, and offer distinctive financial services. The future of artificial intelligence and machine learning in business organisations will be shaped by insights regarding the accuracy, timeliness, predictions, and other elements. The aforementioned explanation of the financial analysis essay can be used to draw the conclusion that, despite the fact that artificial intelligence has simply automated regular duties for financial analysts, this has not led to the eradication of their areas of responsibility. Instead, there has been a certain expansion in the job of the financial analyst. With the help of AI, simple tasks may now be automated, freeing up financial analysts to focus on higher-level tasks like data analysis and critical activity judgement (Benninga, 2014). In order to instal and operate the technologies in the business processes, human intelligence will always be needed. It would be more accurate to draw the conclusion from the readings discussed above for the financial analysis essay that pairing financial analysts with machines will enable both of them to flourish in different areas, which will lead to digital transformation in the field of financial analysis (Benninga, 2014).


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