The topic of artificial intelligence’s impact on financial systems has become increasingly prevalent in IELTS Writing Task 2 examinations. Based on recent test reports and analysis of past papers, this theme has appeared multiple times in various forms, particularly in the last 2 years. As technology continues to evolve rapidly, similar questions are likely to appear frequently in future tests.
Analysis of Task Question
Some people believe that artificial intelligence (AI) will revolutionize financial systems and make them more efficient, while others are concerned about potential risks and job losses. Discuss both views and give your own opinion.
This question follows a classic discussion + opinion format, requiring candidates to:
- Examine benefits of AI in financial systems
- Consider potential drawbacks
- Present and justify their own perspective
The impact of technology on public trust has become a crucial consideration when examining AI’s role in financial systems.
Band 8.5 Sample Essay
Artificial intelligence is rapidly transforming the financial sector, sparking both enthusiasm and concern among different stakeholders. While I acknowledge the legitimate concerns, I believe the benefits of AI integration in financial systems significantly outweigh the potential drawbacks.
The implementation of AI in financial systems offers numerous advantages. Firstly, AI algorithms can process vast amounts of data and execute transactions at unprecedented speeds, improving market efficiency and reducing human error. Moreover, machine learning models can detect fraudulent activities more accurately than traditional methods, enhancing security for financial institutions and their customers. Similarly to the impact of blockchain on global finance, AI is creating new opportunities for innovation and growth in the financial sector.
However, critics raise valid concerns about AI’s impact. The primary worry is job displacement, as automated systems may replace human workers in various financial roles, from basic accounting to complex trading operations. Additionally, there are concerns about the “black box” nature of AI decisions, making it difficult to understand and audit financial processes. As discussed in the impact of technology on global trade, technological advancement often brings both opportunities and challenges.
In my opinion, while the transition may be challenging, the integration of AI into financial systems is both inevitable and beneficial. The key lies in managing this transition effectively by retraining workers for new roles and establishing robust regulatory frameworks. The efficiency gains and improved security offered by AI can create new job opportunities and strengthen the overall financial system.
Band 6.5 Sample Essay
Nowadays, AI is changing how banks and financial companies work. This essay will discuss the good and bad effects of this change.
There are several benefits of using AI in finance. First, computers can work faster than humans and don’t make mistakes when calculating numbers. Also, AI can help find people who try to steal money or do bad things with bank accounts. Banks save money because they need fewer workers.
But there are also problems with AI in finance. Many people lose their jobs when banks start using computers instead of human workers. Some people also worry that computers might make mistakes that humans can’t understand. This could cause big problems for banks and their customers.
I think AI is good for financial systems even though it has some problems. Banks should help workers learn new skills so they can do different jobs. Also, there should be rules about how AI is used to make sure it is safe.
Analysis of Band Differences
Band 8.5 Essay features:
- Sophisticated vocabulary and complex structures
- Clear organization with cohesive devices
- Well-developed arguments with specific examples
- Balanced discussion with clear personal stance
Band 6.5 Essay limitations:
- Simple vocabulary and basic sentence structures
- Limited use of linking words
- Basic arguments without detailed support
- Less formal academic tone
Key Vocabulary
- Algorithm (n) /ˈælɡəˌrɪðəm/ – a set of rules for solving problems
- Integration (n) /ˌɪntɪˈɡreɪʃən/ – the process of combining things
- Fraudulent (adj) /ˈfrɔːdjʊlənt/ – intended to deceive
- Displacement (n) /dɪsˈpleɪsmənt/ – the act of moving something from its usual position
- Regulatory framework (n) /ˈreɡjʊləˌtɔri ˈfreɪmwɜrk/ – system of regulations and guidelines
Consider practicing with similar topics like the impact of AI on social inclusion to enhance your writing skills. Share your practice essays in the comments section for feedback and improvement suggestions.