Artificial intelligence could revolutionise the economies of Cayman and those across the Caribbean, the head of a Cayman ‘Big Four’ financial services firm has said.
Graeme Sunley, the PwC Cayman Island’s territory leader, said the use of AI and emerging technologies were “significant opportunities” for the financial services sector and the country, adding that risk assessment, portfolio management, compliance and valuation all stood to benefit.
“As firms adapt to global market shifts, those that leverage advanced tools to optimize decision-making and capital allocation will gain a competitive edge,” Sunley said.
He added the recent PwC Caribbean Digital Readiness Survey had shown that almost 45% of businesses in the region already saw AI as “critical to their strategy” and about half were seeing returns on their digital investments.
“Cayman’s position as a global hub for investment funds, and its growing prominence in re/insurance positions it well to lead in this next wave of digital transformation,” Sunley said.
He was speaking after PwC released its ‘Value in Motion’ report, which predicted AI could boost global gross domestic product by 15 percentage points over the next decade.
Frazer Lindsay, CEO of PwC in the Caribbean, said, “By evolving our capabilities and who we are as a business, we can help our clients across the Caribbean region build the momentum they need to create value, build trust and face the future with optimism.”
Tanya Beattie, an actuary in Grant Thornton’s office in Bermuda, told the major [Re]Connect reinsurance conference held in Cayman last month, that the sector had been “slow to adopt new technologies and AI” and that more effort needed to be put into the area.
She said that the wholesale adoption of new technology presented risks but “not engaging at all is an even bigger risk”.
Beattie acknowledged there could be a reluctance among reinsurance firms to spend on technology because they had, in the past, invested a lot in systems that had failed to live up to expectations.
She added that “AI literacy is still quite low” and that “ChatGPT might be the limit for many”.
Beattie explained that a hi-tech approach to data analytics could offer “greater efficiencies within the business” and that a common view was that “the present systems are no longer fit for purpose”.
But she warned, “The need to keep the human in the loop, that’s very important. If you look at underwriting, nothing is going to replace underwriting experience. It’s more support, but not replace.”
Sunley agreed that technology alone was not enough to ensure that companies thrived as technology advanced.
“Strategic investment in systems and talent is essential – but on its own, it’s not enough to drive meaningful transformation,” he said in a written response.
“At PwC, we see that the businesses realizing the greatest digital gains are those that combine ambition with agility, and foster a workforce ready to adapt, innovate, and lead through ongoing disruption.”
Cayman outlook better than US
Sunley also sounded a note of optimism for PwC in Cayman, despite news that its US arm, in line with the other three of the Big Four firms – KPMG, Deloitte and EY – had announced hundreds of job losses.
PwC in the US said about 1,500 jobs, 2% of its 75,000-strong US workforce, would be cut, mostly in its audit and tax divisions.
The redundancies across the financial services sector were blamed on sluggish demand and low staff turnover.
Sunley said, “We continue to experience growth across all of our business lines at PwC Cayman, and remain focused on delivering value to our clients and investing in our people.”
It is the second round of job losses in the US after Paul Griggs took over as the PwC US senior partner last year.
About 1,800 job losses were announced last September.
Experts said that workforce attrition had been a release valve in industries with a high turnover of staff, including financial services, but the pandemic – and the market disruption it caused – had altered employee behaviour.
