The Spread of Artificial Intelligence and Its Impact on Employment: Evidence from the Banking and Accounting Sectors

Abstract

This chapter explores the diffusion of Artificial Intelligence (AI) and its impact on employment in two sectors, namely accounting and banking. The first study adopts a conceptual approach. The analysis examines AI’s possible advantages and risks on the accounting profession’s supply of labour. The results underline the need for hybrid adaptation, where accountants learn to adopt AI as a group rather than individually. In the second study, the analysis explores the use of AI in the recruitment and selection of personnel in the Cypriot banking sector. The research draws on findings collected through online interviews with Human Resource managers, where none of the five banks participating in the study use AI in their recruitment process. Respondents attributed this lacuna to the traditional and casual approaches to downsizing, restructuring, technical challenges, and ethical considerations. Evidence emerging from these studies enables us to compare and contrast the narrative around AI (accounting) with its actual impact (banking).