Abstract
The rapid integration of Artificial Intelligence (AI) in the retail banking sector is reshaping skills demand and workforce dynamics. This study explores the perceptions of retail banking service skills development and digital transformation professionals’ perception of Artificial Intelligence skills demand in South Africa, both currently and in the future.
The study adopted the Postdigital theory as its theoretical framework combined with the Social Construction of Technology (SCOT) theory. Pinch and Bijker (1984) are the creators of the SCOT theory which arose from Collins's Empirical Program of Relativism (1981). The SCOT theory was criticised overtime by scholars including Humphreys (2005) and Khoo (2005), leading to its combined usage with the postdigital theory.
A qualitative research methodology was adopted within a constructive-interpretivist paradigm. The raw data was gathered by means of semi-structured interviews with nine retail bank branch managers from ABSA, Capitec and African Bank, complemented by document review of industry reports and articles.
The findings revealed that the bank managers viewed a relationship between AI technology integration and evolving skills demand in the industry and in their respective banks. They believed that while AI integration continues to grow, there is a rising need for a spectrum of both technical (hard) and interpersonal (soft) skills. Hard skills include IT knowledge, digital platform navigating, digital communication and cybersecurity. While soft skills such as complex problem-solving, responsiveness to technology, social and emotional skills, time management and relationship management are identified as crucial especially due to customers’ diverse technological abilities. The study also indicates how the bank managers consider generational differences in AI adoption, with older employees displaying resistance due to fear of change, whereas the younger and tech-savvy older employees are more receptive to AI adoption within the banks. Additionally, bank managers also expressed concerns about job displacements and emphasized the necessity for continuous upskilling programmes in the banking sector.
The study concludes that, as AI integration grows within the retail banking sector, the demand for AI-related skills increases, necessitating continuous upskilling of employees
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to ensure job security and successful transition into new job opportunities that will emerge. Furthermore, the responsibility of upskilling lies in both the education sector and the banking sector as a whole. Implications for the banking sector policy are continuous AI skills training and upskilling policies, fair job relocation policies, partnerships with TVET institutions for work-integrated learning and unbiased structured upskilling programmes.
The implications for further research are long-term impact of workforce dynamics, labour market needs and the effectiveness of upskilling training and programmes. Additionally, research should assess the role of government interventions through curriculum reforms, industry collaborations and funding for digital skills development.
The study recommends banks to enhance upskilling programmes with a focus on older employees and those in traditional roles to help them overcome technological anxiety. TVET colleges and SETAs should incorporate AI skills training and human centric skills such as critical thinking and relationship management.