The Finance Sector in 2024
Some of my main clients at Kantar in the Financial Services sector and several have been asking us to help think about how AI (among other things) might impact their business and influence their customers in 2024, and it has prompted me to ponder a few things and hence this little article. I think as we look ahead to the financial landscape in 2024, several factors stemming from the current inflection point will significantly impact the world of finance. The convergence of political and economic uncertainties, shifts in consumer behaviour, and the rapid pace of technological advancements is surely expected to shape the financial sector in the coming year.
One of the primary concerns from this year that I think will carry over into 2024 is the persistence of inflationary pressures. While the 2023 forecast exceeded initial projections, it remains comparatively low when measured against historical benchmarks. The nuanced effects of inflation are likely to continue influencing investment strategies, monetary policies, and overall market dynamics.
However, as the title of this article suggests, for me the really interesting space is the technological landscape in relation to AI. This has already had a massive impact this year and is clearly going to have even more profound influence in 2024. The advent of AI with the launches of ChatGPT and Bard has already demonstrated transformative potential. The financial industry, known for its reliance on data analytics and algorithmic trading, and so much more is surely expected to embrace AI technologies more extensively. This integration could enhance risk management, automate routine tasks, and streamline decision-making processes. However, striking a balance between the efficiency gains brought about by AI and the potential societal disruptions it may cause will be a key challenge for financial institutions in 2024 and beyond.
Consumer behaviour, influenced by the experiences of 2023, will also contribute to financial trends in 2024. The lessons learned during economic troubles and shifts in purchasing patterns will likely influence investment preferences, demand for certain types of financial products, and the overall trajectory of consumer-driven sectors. In summary, 2024 promises to be a year marked by the intersection of economic, technological, and societal forces, each leaving a distinct imprint on the financial landscape. Navigating these multifaceted challenges will require adaptability, strategic foresight, and a commitment to ethical and responsible financial practices in relation to the adoption of AI.
(The opinion in this article are my own personal reflections)