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Student Name/ID [Link]/ E213098

Unit Title Unit 16: Computing Research Project -Pearson Set

Assignment Number 1 of 2 Assessor

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submission
Assessor Feedback:
LO1 Examine appropriate research methodologies and approaches as part of the research process
Pass, Merit & Distinction P1 P2 M1 D1
Descripts

LO2 Conduct and analyse research relevant to a chosen computing research project

Pass, Merit & Distinction

P3 ☒ P4 ☐ M2 ☐ D1 ☐
Descripts

LO3 Communicate the outcomes of a research project to identified stakeholders

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P5 ☐ M3 ☐ D2 ☐
Descripts

LO4 Reflect on the application of research methodologies and concepts

Pass, Merit & Distinction

P6 ☐ P7 ☐ M4 ☐ D3 ☐
Descripts

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Assessor Feedback:

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 Pearson
Higher Nationals in
Computing
Unit 16: Computing Research Project
Project Proposal

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 Important Points:

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STUDENT ASSESSMENT SUBMISSION AND DECLARATION

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Student name: Assessor name:
[Link]

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Programme:
HND in Computing

Unit: 16 – Computing Research Project

Assignment number and title:
1 -research proposal | Computing Research Project on Artificial Intelligence

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Higher National Diploma in Computing
Assignment Brief
Student Name /ID Number [Link] / E213098

Unit Number and Title Unit 16 – Computing Research Project (Pearson set)-

Academic Year 2024/25

Unit Tutor

Assignment Title

Issue Date

Submission Date

IV Name & Date

Submission format

• Research Project Proposal- The submission is in the form of an individual written report.
This should be written in a concise, formal business style. You are required to make use
of headings, paragraphs and subsections as appropriate, and all work must be supported
with research and please provide a references list using the Harvard referencing system.

The recommended word limit is 2000 words.

• Formal project report - In the form of an individual written report. This should be
written in a concise, formal business style following standard academic guidelines for
research projects. You are required to make use of headings, paragraphs and subsections
as appropriate, and all work must be supported with research. Referencing using the
Harvard referencing system.

The recommended word limit is minimum 4,500 words

• PowerPoint presentation – present your research finding in a 10 to 15 minutes

presentation that elaborates the research process followed, findings and conclusion,
recommendation and future research considerations.
Please submit the speaker notes of the presentation in the appendix section of the
final project report.

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 Unit Learning Outcomes:

LO1. Examine appropriate research methodologies and approaches as part of the research
process.
LO2. Conduct and analyse research relevant to a chosen computing research project
LO3. Communicate the outcomes of a research project to identified stakeholders
LO4. Reflect on the application of research methodologies and concepts

Trasferrable skills and Competencies developed

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 Assignment Brief and Guidance:

Research Theme: Artificial Intelligence

Artificial intelligence is at the forefront of innovation within Computer Science that uses a
combination of logic, algorithms and large data sets to produce an AI model. The AI model is created
to perform specific tasks or make predictions on supplied sets of input data, for example identifying
patterns in weather data, internet search data or analysis of medical data. Artificial intelligence is
predicted to generate a potential impact to the global economy of $13 – $15 Trillion by 2030, with
sales of AI related hardware, software and services predicted to see a global revenue of $900 billion.
It is predicted that AI will boost the GDP of China by a little over 26% by 2039, and of North America
by 14.5%. AI requires the input of structured and labelled data, where the outputs are already
known. The input data sets to the AI model are intrinsically linked to study field to which the AI
engine is to be applied. The AI model can then be used to identify and recognise patterns and
relationships within the input data. This identification step is referred to as ‘training’ the AI model.
Once this training is completed, the model can then be used to make predictions and identify
patterns within brand new data sets. This new data set can then be added to the existing data set,
so that the AI model keeps ‘growing’. As the model data set keeps expanding, and the AI algorithms
are modified and refined, this gives the impression that the AI is ‘learning’ and demonstrating
‘intelligence’. AI has been used extensively to analyse and process large and complex datasets
produced by big data systems, often in real time and using Computer Vision to extract data from
image sources.

Developing Artificial Intelligence required a range of knowledge and skills across a broad range of
computer science disciplines. AI developers need to be familiar with the algorithms and techniques
in fields such as machine learning, natural language processing, computer vision and data science.
Knowing the required computing skills will help organisations recruit the correct resources to help
develop and extend AI systems. Artificial Intelligence has a range of benefits across many industry
sectors. In the finance industry, AI is rapidly becoming a game changer, using advanced algorithms,
models and machine learning to carry out predictive analytics on large, rapidly changing financial
datasets to provide more accurate financial predictions. In the field of business operations, AI
automation is helping to support and enhance labour. productivity, leading to greater cost savings
and increased efficiency. AI is also revolutionising the way businesses interact with their customers,
by providing AI driven expert systems to help customers resolve queries as well as providing
personalised recommendations based on customer choices and preferences. In the field of

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 biomedical science, AI models help in the development of new drug treatments for a range of
diseases by searching and processing large scale medical and DNA datasets.

While Artificial Intelligence has numerous benefits in the analysis and processing of large data sets
to solve problems, there are some clear risks to the application technology. AI systems respond to
the data fed into the model, and so if this data is not representative of the problem area under
study, there is a likelihood that the output of the AI model will be biased. In addition, there are
security and privacy concerns on the source and storage of the large datasets used for AI. The rise
of the Deepfake image and the manipulation of the human voice is also a concern because of the
spread of misinformation. The wide-ranging effects of these risks mean that they can only be dealt
with by a diverse range of stakeholders, including computer scientists, law makers, governments,
and industry leaders. There are also incidental risks of AI in business, for example the increasing
adoption of AI based systems may increase unemployment across a range of sectors and workforce
demographics.
(Pearson, 2024)

Task
You have been given the task of conducting research related to artificial Intelligence and its impact
on the field of computing, a chosen organization or an industry. Your task is to conduct research
with appropriate evidence by following suitable research philosophies and methods available. You
then must evaluate the outcomes of the research project and suggest improvements to the chosen
industry, organization or to the field of computing in general.

Choosing a research objective/question

You can choose your own research topic for this unit. Strong research projects are those with clear,
well focused and defined objectives. A central skill in selecting a research objective is the ability to
select a suitable and focused research objective. One of the best ways to do this is to put it in the
form of a question.
The range of topics discussed on Artificial Intelligence could cover the following areas:
• Ethical implications in AI development
• Transparency in AI models
• AI applications
• AI perspectives on governance and regulations
• Bias and fairness in AI algorithms
• AI in cybersecurity; threats and countermeasures

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 Activities

Activity1 – Project Proposal

Project Proposal should cover the following areas.

1. Definition of research problem or question.

2. Provide a literature review giving the background and conceptualisation of the proposed area
of study. (This would provide existing knowledge and benchmarks by which the data can be
judged)
3. Clearly defined research objectives, questions or hypotheses supported by the reviewed
literature.
4. Critical evaluation of the research process /different research methodologies that can be
applied to computing research project by demonstrating an understanding of the pitfalls,
ethical issues, and limitations. choose a suitable research methodology and justify the
selection based on theoretical/philosophical frameworks.

Activity 2 – Conducting the research and producing the final research paper
The Learner requires to produce a detailed research project report covering following areas

• Conduct primary and secondary research using appropriate methods for a computing
research project that considers costs, access and ethical issues.
• Carry out your research and apply appropriate analytical tools to analyse research findings
and data.
• Draw conclusion based on the research findings.
• Communicate the outcomes of your research project to the identified audience. Analyze
and discuss merits, limitations and pitfalls experienced in research methodologies and
data collections methods applied considering to which extent the project objectives
were met.
• Evaluate the project outcomes to suggest justified recommended actions leading to
future improvements and future research consideration.
• Reflect on the success of your research project and your performance at the end of the
project by evaluating the research process followed and the methodologies applied.
Consider alternative research methodologies and lessons learnt in view of the project
outcomes.

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 Activity 3 – formal Presentation on Research findings

Communicate the findings of your research project to identified stakeholders in a 10–15-minute

formal presentation. The presentation should cover,

• A brief introduction to the research area, objectives, hypotheses/research questions.

• Analysis of the research and data collection methodologies followed.
• A summary of the research findings
• Conclusion and summary of the recommended actions
• Future improvements and research considerations.

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 Recommended resources

Textbooks
Cornford, T., Smithson S. (2005) Project Research in Information Systems: A Student’s
Guide. Paperback. Palgrave Macmillan.
Costley, C., Elliott, G. and Gibbs, P. (2010) Doing Work Based Research: Approaches to
Enquiry for Insider-researchers. London: SAGE.
Fink, A. (2020) Conducting Research Literature Reviews: From the Internet to Paper.
5th edn. Sage Publications Inc.
Flick, U. (2020) Introducing Research Methodology: A Beginner’s Guide to Doing a
Research
Project. London: Sage Publications Ltd.
Gray, D.E. (2009) Doing Research in the Real World. 2nd edn. London: SAGE.
Saunders, M., Lewis, P. and Thornhill, A. (2012) Research Methods for Business Students.
6th edn. Harlow: Pearson.
Wellington, J. (2000) Educational Research: Contemporary Issues and Practical
Approaches. Continuum International Publishing Group Ltd.

Journals
International Journal of Quantitative and Qualitative Research
Qualitative Research

Links
This unit links to the following related units:
Unit 3: Professional Practice
Unit 6: Planning a Computing Project (Pearson-set)
Unit 7: Software Development Lifecycles.

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Useful links

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 Appendix 1 – Project proposal
template
Research Proposal Form
Student Name [Link]
Student number E213098 Date

Centre Name
Unit
Tutor
Proposed title

Section One: Title, objective, responsibilities

Title or working title of research project (in the form of a question, objective or hypothesis): Research
project objectives (e.g. what is the question you want to answer? What do you want to learn how
to do? What do you want to find out?): Introduction, Objective, Sub Objective(s), Research
Questions and/or Hypothesis

Section Two: Reasons for choosing this research project

Reasons for choosing the project (e.g. links to other subjects you are studying, personal interest,
future plans, knowledge/skills you want to improve, why the topic is important): Motivation,
Research gap

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 Section Three: Literature sources searched
Use of key literature sources to support your objective, Sub Objective, research question and/or
hypothesis: Can include the Conceptual Framework

Section Four: Activities and timescales

Activities to be carried out during the research project (e.g. research, development, analysis of ideas,
writing, data collection, numerical analysis, tutor meetings, production of final outcome, evaluation,
writing the report) and How long this will take:
Milestone Propose completion data

Section Five: Research approach and methodologies

Type of research approach and methodologies you are likely to use, and reasons for your choice:
What your areas of research will cover: Research Onion; Sample Strategy/Method; Sample Size

Comments and agreement from tutor

Comments (optional):

I confirm that the project is not work which has been or will be submitted for another qualification
and is appropriate.

Agreed Yes ☐ No ☐ Name Date

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 Comments and agreement from project proposal checker (if applicable)
Comments (optional):

I confirm that the project is appropriate.

Agreed Yes ☐ No ☐ Name Date

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Research Ethics Approval Form
All students conducting research activity that involves human participants or the use of data
collected from human participants are required to gain ethical approval before commencing
their research. Please answer all relevant questions and note that your form may be returned
if incomplete.
Section 1: Basic Details
Project title:
Student name: [Link]
Student ID number: E213098
Programme:
School:
Intended research start date:
Intended research end date:
Section 2: Project Summary
Please select all research methods that you plan to use as part of your project
• Interviews: ☐
• Questionnaires: ☐
• Observations: ☐
• Use of Personal Records: ☐
• Data Analysis: ☐
• Action Research: ☐
• Focus Groups: ☐
• Other (please specify): ☐ .................................................................
Section 3: Participants
Please answer the following questions, giving full details where necessary.
Will your research involve human participants?

Who are the participants? Tick all that apply:

Age 12-16 ☐ Young People aged 17–18 ☐ Adults ☐
How will participants be recruited (identified and approached)?

Describe the processes you will use to inform participants about what you are doing:

Studies involving questionnaires:

Will participants be given the option of omitting questions they do not wish to answer?

Yes ☐ No ☐
If “NO” please explain why below and ensure that you cover any ethical issues arising from this.

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 Studies involving observation:

Confirm whether participants will be asked for their informed consent to be observed.

Yes ☐ No ☐
Will you debrief participants at the end of their participation (i.e. give them a brief explanation of
the study)?

Yes ☐ No ☐
Will participants be given information about the findings of your study? (This could be a brief
summary of your findings in general)

Yes ☐ No ☐

Section 4: Data Storage and Security

Confirm that all personal data will be stored and processed in compliance with the Data Protection
Act (1998)
Yes ☐ No ☐
Who will have access to the data and personal information?

During the research:

Where will the data be stored?

Will mobile devices such as USB storage and laptops be used?

Yes ☐ No ☐
If “YES”, please provide further details:
After the research:

Where will the data be stored?

How long will the data and records be kept for and in what format?

Will data be kept for use by other researchers?

Yes ☐ No ☐
If “YES”, please provide further details:

Section 5: Ethical Issues

Are there any particular features of your proposed work which may raise ethical concerns? If so,
please outline how you will deal with these:

Section 6: Declaration

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 I have read, understood and will abide by the institution’s Research and Ethics Policy:
Yes ☐ No ☐
I have discussed the ethical issues relating to my research with my Unit Tutor:
Yes ☐ No ☐
I confirm that to the best of my knowledge:
The above information is correct and that this is a full description of the ethics issues that may arise
in the course of my research.

Name:

Date:

Please submit your completed form to: ESOFT Learning Management System (ELMS)

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 THE RESEARCH PROPOSAL

By

Chavindu Thilakarathne E213098

Research Proposal Submitted in accordance with the requirements for the

COMPUTING RESEARCH PROJECT MODULE OF
PEARSON’S HND IN SOFTWARE ENGINEERING
PROGRAMME
at the
ESOFT METRO CAMPUS

Name of research Tutor: <Mr. Rasika Herath>

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 i

ACKNOWLEDGMENT

I would like to thank all and I prefer to express my gratitude to one and all. Especially to our
CRP lecturer Mr Rasika Herath for providing motivation to us and providing everything that
was necessary and the data that we needed to carry out our research proposal and assisted
me in completion of this research proposal without any obstacle.

Thank you.

CONTENTS

ACKNOWLEDGMENT ............................................................................................................. i
EXECUTIVE SUMMARY........................................................................................................ii
CONTENTS ................................................................................................................................ i
LIST OF TABLES ..................................................................................................................... v
LIST OF FIGURES .................................................................................................................. vi
INTRODUCTION ...................................................................................................................... i
1.1. Introduction .................................................................................................................. i
1.2. Purpose of research .....................................................................................................ii
1.3. Significance of the Research ......................................................................................iii
1.4. Research objectives .................................................................................................... iv
1.5. Research Sub objectives ............................................................................................. iv
1.6. Research questions ...................................................................................................... v
1.7. Hypothesis ................................................................................................................... v
LITERATURE REVIEW .......................................................................................................... 2
2.1. Literature Review ........................................................................................................ 2
2.2. Conceptual framework ................................................................................................ 2
METHODOLOGY...................................................................................................................vii
3.1. Research philosophy .................................................................................................vii
3.2. Research approach.....................................................................................................vii
3.3. Research strategy.......................................................................................................vii
3.4. Research Choice ........................................................................................................vii
3.5. Time frame ................................................................................................................vii
3.6. Data collection procedures .......................................................................................viii
3.6.1. Type of Data .....................................................................................................viii

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 ii

3.6.2. Data Collection Method ....................................................................................viii

3.6.3. Data Collection and Analyze Tools .................................................................... ix
3.7. Sampling..................................................................................................................... ix
3.7.1. Sampling Strategy ............................................................................................... ix
3.7.2. Sample Size ......................................................................................................... ix
3.8. The selection of participants ...................................................................................... ix
REFERENCES .......................................................................................................................... xi

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 INTRODUCTION

1.1. Introduction

Artificial Intelligence (AI) is now an integral facet of modern technology and is widely used in
numerous fields. AI is transforming business processes, making decisions, and moulding
consumer experiences. AI is used in many areas, such as automated hiring, financial forecasting,
and diagnosis in medicine. However, since AI tools play more and more important parts in vital
decision-making structures, there has arisen significant concern about fairness, interpretability,
and ethical issues.

One of the main challenges of the domain of artificial intelligence is that of algorithmic bias, or
the phenomenon of unfair or incorrect results generated by AI algorithms, typically due to
imbalanced training data or imperfect design processes. The application of such technologies to
areas of critical importance, such as criminal justice, employment, financial matters, and facial
recognition, can result in far-reaching consequences. Such consequences can appear as uneven
practices, loss of public trust, possible litigation, and reinforcement of already present socio-
economic differences.

The goal of this study is to measure the prevalence and implications of bias in AI systems,
critically analyze existing mitigation efforts, and examine methods of quantifying and promoting
fairness. The final goal is to provide practical recommendations and frameworks that enable the
development of ethical, transparent, and inclusive AI.

Purpose of the Study

The main purpose of this research is to analyze the roots and implications of algorithmic bias in
artificial intelligence systems and determine effective equity-enhancing strategies. Given that
artificial intelligence continues to infuse fields like health, finances, criminal justice, and hiring,
there is an imperative to safeguard fairness and overcome bias.

This research aims to:

Analyze both main sources of algorithmic bias, which include biased training datasets and
flawed model structure.
 ii

Evaluate the effectiveness of current bias reduction strategies and fairness measurement
techniques. A study of the impact of prejudiced artificial intelligence against individuals and
minorities

Offer practical recommendations and guidelines to developers of artificial intelligence,

policymakers, and industry stakeholders.

Through both technical and ethical analysis of AI bias, this research encourages AI system
development that is both reliable and socially accountable.

Significance of the Study

This research is of significant importance because of its potential to influence the creation,
evaluation, and deployment of artificial intelligence systems in real-world applications. Bias in
AI can lead to embedded discrimination, loss of public trust, possible legal consequences, and
negative impacts on society—especially for marginalized groups.

By examining the underlying factors and implications of algorithmic bias, this research bridges
the fields of technological development and moral responsibility. The findings can be beneficial
to:

• Policymakers and regulators in developing guidelines for ethical AI use.

• Researchers and practitioners are working to develop fairer algorithms and models.

• Industry leaders in adopting responsible AI practices.

• Academics and researchers in furthering AI ethics and fairness studies.

1.2. Purpose of research

The purpose of this study is to examine the implications of bias in artificial intelligence
algorithms and offer recommendations that uphold fairness in AI systems. Fair and unbiased
functioning of these systems is imperative, as they find widespread application in decision
making in multiple fields like medicine, banking, policing, and hiring.

The research aims to:

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 iii

Review the main factors that cause algorithmic bias, such as biased training databases and poor
model structure.

Assess the effectiveness of current mitigation efforts and subsequent implications on equity.
Promoting an overall understanding of how bias can impact individuals and groups, specifically
those that belong to marginalised groups.

Suggesting actionable recommendations and policies to developers of artificial intelligence,

policymakers, and other businesses to adopt more ethical and fair practices within the
educational framework of artificial intelligence.

This study will enable the development of trustworthy and morally responsible AI systems
appropriate to be implemented in mission-critical environments by analyzing the technical and
ethical aspects related to AI bias.

1.3. Significance of the Research

The relevance of this study is in its ability to inform development, assessment, and
implementation of artificial intelligence in practical environments. Biased algorithms can result
in widespread discrimination, loss of trust, legal issues, and harm to individuals, especially those
of lower socio-economic statuses and marginal communities, as AI continues to find application
in social interactions.

By exploring the origins and implications of algorithmic bias, this research seeks to bridge the
gap between technological innovation and ethical responsibility. This project will improve
understanding of fairness in artificial intelligence and enable the development of effective
counter-strategies to mitigate bias.

Data that can be gathered using this inquiry

• Regulators and Policy makers, legislations and crafting guideline for ethical AI use.

• Engineers and Developers, detecting and reducing bias by implementing technical

solutions.

• Industry leaders and institutions are adopting responsible artificial intelligence research

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 iv

and creating more inclusive AI technologies.

• Researchers and Academics, studying AI ethics and fairness by offering foundations.

1.4. Research objectives

The main purpose of this research is to examine and address issues related to bias and equity in
artificial intelligence systems. The overall goal of this analysis is

o Identifying common categorizations and sources of bias that impact algorithms of

artificial intelligence both at the training and application stages.

o Measure and analyze different equity metrics to evaluate and detect biases in artificial
intelligence.

o Analysis of existing bias mitigation techniques and assessment of effectiveness in

different uses of artificial intelligence

o Exploring legal, ethical, and social implications of prejudicial artificial intelligence

technologies on individuals and society at large.

o Developing actionable recommendations for AI researchers, policymakers, and industry

leaders to embrace fair and responsible approaches to AI research.

The following factors will impact this research by providing technical understanding and ethical
guidelines intended to promote fairness in the field of artificial intelligence.

1.5. Research Sub objectives

The following sub-goals will outline the research undertaking's trajectory:

• Analyzing the case study where AI bias has had a measurable real-world consequence.

• The study considers different measures of fairness, i.e., demographic parity, equalized
odds, and disparate impact, and finds them appropriate in different areas of application.

• Analyzing open-source AI models and datasets to investigate trends or signs of inbuilt

bias.

• Conducting interviews or surveys of artificial intelligence users to gather information

about current approaches to bias mitigation.

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 v

• Assessing the legal and regulatory framework related to fairness in AI in different

industry and geographic settings.

• Propose a checklist or framework that industries can use to assess and mitigate bias
during the development and deployment of artificial intelligence technologies.

The following sub-objectives identify research to be carried out by means of practical exercises
to achieve an overall analysis of both technical and ethical aspects.

1.6. Research questions

The next major questions will set the overall structure to direct the inquiry.

The basic causes of prejudice that exist within algorithms of artificial intelligence and how these
biases manifest in real-world uses.

Tools and methods measure equity in artificial intelligence technologies using widely
acknowledged metrics in several different ways.

There is a wide range of methodologies and tools available to mitigate bias in artificial
intelligence, and these have different impacts in different settings.

The use of prejudiced AI technologies has significant societwide and ethical implications.

Several measures can be adopted by policymakers and businesses to promote fairness and
accountability in developing and using artificial intelligence.

The structured inquiries seek to probe both theoretical and practical aspects of fairness and
bias in AI, as well as provide an overall structure to the ongoing research initiative.

1.7. Hypothesis

The main hypothesis underlying this study can be stated as follows.

The use of biased or representative datasets to train artificial intelligence algorithms can result in
algorithms that generate unjust or discriminatory outcomes. The application of proper fairness
metrics and bias reduction techniques can, however, mitigate these harmful impacts significantly

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 vi

and improve the ethical soundness of AI.

The hypothesized framework will be assessed by an analysis of remedy tools, databases, fairness
metrics, and remediation procedures, supported by qualitative results as well as quantitative
conclusions established form empirical case studies and expert viewpoints.

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 vii

METHODOLOGY

2.1. Research philosophy

The current research uses an interpretivist paradigm that focuses on understanding human
experiences, interpretations, and perceptions of reality. This research paradigm enables an in-
depth analysis of stakeholders' experiences and perceptions of AI-based automation in the
financial industry, specifically around issues of ethical aspects and job replacement. Compared to
positivist philosophy that focuses solely on measurable facts, interpretivism is best suited to
address complex socio-ethical issues and human matters that cannot be easily quantifiable.

2.2. Research approach

The research adopts an inductive framework. In contrast to analyzing an existing theory, this
research comes to conclusions by extensively scrutinizing qualitative secondary information. As
using artificial intelligence in financial institutions is a pioneering and rapidly changing field,
inductive reasoning enables extracting emerging trends and synthesizing knowledge by drawing
on scholarly research, policy reports, and case studies.

2.3. Research strategy

A qualitative secondary research design is adopted. This involves the review of peer-reviewed
journal articles, whitepapers, institutional reports (e.g., McKinsey, PwC, and ILO), and
published case studies of AI adoption in financial institutions. This method avoids the need for
primary data collection from human subjects but enables detailed insight through systematic
review and thematic analysis.

2.4. Research Choice

A qualitative methodology adopting a mono-method has been implemented since it aligns with
the study goal of studying the work and ethical implications in both analytical and descriptive
aspects. Quantitative methodologies would be inappropriate since the research does not set out to
statistically measure the application of AI, rather it seeks to thoroughly understand its
implications.

2.5. Time frame

The research uses cross-sectional temporal design. The research examines literature, events, and
information published between the years 2019 and 2024. This time frame covers recent
developments in artificial intelligence in the financial field, particularly changes driven by digital
transformation following the spread of the COVID-19 pandemic.

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 viii

2.6. Data collection procedures

1. Type of Data
2. Data Collection Method
3. Data Collection and Analyze Tools

3.1. Research Philosophy

3.2. Research Approach
3.3. Research Strategy
3.4. Method Choice
3.5. Time Horizon
3.6. Data Collection Procedures

3.6.1. Type of Data

The research solely used secondary qualitative data. The dataset included:

• Peer-reviewed academic journal articles

• Case studies from financial institutions (e.g., JPMorgan and HSBC).

• Whitepapers from McKinsey, PwC

• Government and regulatory reports (e.g., EU AI Act, FCA guidelines)

No primary data collection, survey, or interviews were conducted.

3.6.2. Data Collection Method

A thorough literature review was carried out. The materials were selected according to the
inclusion criteria stated.

• English language
• Released between 2019 and 2024.

Relevant to artificial intelligence, finances, ethics, or employment

• Search databases included:

• Google Scholar
• JST
• ScienceDirect
• Corporate and government websites

Keywords used included:

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“AI in finance,” “ethical AI,” “job automation,” “AI and employment,” “AI governance in
banking.”

3.6.3. Data Collection and Analyze Tools

Data was manually analyzed using thematic analysis.
Steps included:

• Reading and highlighting key concepts

• Categorizing similar findings in thematic categories.

• Examining the views of different writers or institutions.

Tools used

• Microsoft Word for document coding

• Excel to organize source information and extract patterns

• Zotero/Google Docs for citation tracking

Statistical tools like SPSS were not required since the data are in themselves qualitative.

2.7. Sampling

3.7.1. Sampling Strategy

Purposive sampling was utilized in this research. This method means that sources were selected
according to their importance, credibility, and focus on artificial intelligence, finance, and ethics.
Academic journals, think tank publications, and financial case studies were prioritized.
3.7.2. Sample Size
Approximately 25 documents were analyzed. This set included 12 academic journal articles, 6
industry whitepapers (e.g., McKinsey, PwC), 4 regulatory documents (e.g., EU AI Act and FCA
guidelines), and 3 in-depth case studies of banks such as JPMorgan and Goldman Sachs.

2.8. The selection of participants

Ethical considerations were given precedence even though primary research was not
undertaken. The sources were cited correctly following the system of Harvard referencing. The
research was carried out following the British Computer Society (BCS) Code of Conduct by
ensuring

• Intellectual honesty and zero plagiarism

• Clear acknowledgment of every individual contribution.

• No misrepresentation of data or biased interpretation

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Since surveys, interviews, and human participants were not used in this project, formal ethical
approval was not required. Nonetheless, ethical principles were observed throughout the
research process.

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REFERENCES

• Arntz, M., Gregory, T. and Zierahn, U., 2016. The risk of automation for jobs in OECD
countries: A comparative analysis. OECD Social, Employment and Migration Working
Papers, No. 189.
• Binns, R., 2018. Fairness in machine learning: Lessons from political philosophy.
Proceedings of the 2018 Conference on Fairness, Accountability and Transparency,
pp.149–159.
• Brynjolfsson, E. and McAfee, A., 2017. Machine, Platform, Crowd: Harnessing Our Digital
Future. 1st ed. New York: W. W. Norton & Company.
• European Commission, 2021. Proposal for a Regulation laying down harmonised rules on
artificial intelligence (Artificial Intelligence Act). [online] Available at:
[Link] [Accessed 20 Apr.
2025].
• International Labour Organization (ILO), 2021. Technology and the Future of Work.
[online] Available at: [Link] [Accessed 15 Apr. 2025].
• McKinsey Global Institute, 2020. The Future of Work After COVID-19. [online] Available
at: [Link] [Accessed 18 Apr. 2025].
• Mittelstadt, B., Allo, P., Taddeo, M., Wachter, S. and Floridi, L., 2016. The ethics of
algorithms: Mapping the debate. Big Data & Society, 3(2), pp.1–21.
• PwC, 2018. Will robots really steal our jobs?. [online] Available at:
[Link]
[Link] [Accessed 18 Apr. 2025].
• Whittlestone, J., Nyrup, R., Alexandrova, A. and Cave, S., 2019. The role and limits of
principles in AI ethics: Towards a focus on tensions. Proceedings of the 2019 ACM/AAAI
Conference on AI, Ethics, and Society.
• Accenture, 2021. AI and the future of financial services. [online] Available at:
[Link] [Accessed 19 Apr. 2025].
• JPMorgan Chase, 2022. How COiN Transformed Legal Processing. [online] Available at:
[Link] [Accessed 18 Apr. 2025].

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Appendix 2 – Research paper template

< The Impact of AI-Driven Automation on Employment and Ethics in

the Financial Sector.>

By
<Chavindu Thilakarathne>
<E213098>

Submitted in accordance with the requirements for the

COMPUTING RESEARCH PROJECT MODULE OF PEARSON’S HND
IN SOFTWARE ENGINEERING PROGRAMME
at the
ESOFT METRO CAMPUS

Name of research Tutor: <Mr. Rasika Herath>

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DECLARATION

Name of Research Candidate: [Link]

Pearson Registration Number: E213098
Programme Name: Pearson BTEC Level 5 Higher National Diploma in Computing
Research Title: The Impact of Artificial Intelligence Automation on the Financial Sector and Its
Ethical Implications.
Field of Study: Computing / Information Technology
I do solemnly and sincerely declare that:
i. I’m the sole author of this study
ii. This work is original
iii. In case of any use if any information from other sources references of copyright with its
ownership have been acknowledged in this document
iv. I do not have any actual knowledge nor do I ought reasonably to know that the making of
the work constitutes an infringement of any copyright work
v. I know that plagiarism is a punishable offence because it constitutes theft, I understand the
plagiarism and copying policy of the Edexcel UK, I know what the consequences will be
if I plagiaries or copy another’s work in this research for this program.

Candidate Signature: chavindu Date: 1st May 2025

Subscribed and solemnly declared before,

Supervisor’s Name:

Designation:

Supervisor’s Signature: Date:

 ii

CONTENTS
DECLARATION ........................................................................................................................................... i
ACKNOWLEDGMENT ............................................................................................................................... ii
ABSTRACT ..................................................................................................................................................iii
CONTENTS .................................................................................................................................................. ii
LIST OF ABBREVIATIONS .......................................................................................................................vi
A LIST OF TABLES ...................................................................................................................................vii
LIST OF FIGURES..................................................................................................................................... viii
CHAPTER 1 – INTRODUCTION ............................................................................................................... 1
1.1. Introduction ................................................................................................................................... 1
1.2. Purpose of research ....................................................................................................................... 1
1.3. Significance of the Research ......................................................................................................... 1
1.4. Research objectives ....................................................................................................................... 1
1.5. Research Sub objectives................................................................................................................ 1
1.6. Research questions ........................................................................................................................ 1
1.7. Hypothesis ..................................................................................................................................... 1
1.8. Thesis structure ............................................................................................................................. 1
CHAPTER 1 - Introduction ..................................................................................................... 1
CHAPTER 2 - Literature Review............................................................................................ 1
CHAPTER 3 - Methodology ................................................................................................... 1
CHAPTER 4 - Presentation of Results .................................................................................... 1
CHAPTER 5 - Conclusions and Recommendations ............................................................... 1
CHAPTER 2 - LITERATURE REVIEW ..................................................................................................... 2
2.1. Literature Review .......................................................................................................................... 2
2.2. Conceptual framework .................................................................................................................. 4
CHAPTER 3 - METHODOLOGY ............................................................................................................... 5
3.1. Research philosophy ..................................................................................................................... 5
3.2. Research approach ........................................................................................................................ 5
3.3. Research strategy .......................................................................................................................... 5
3.4. Research Choice ............................................................................................................................ 5
3.5. Time frame .................................................................................................................................... 5
3.6. Data collection procedures ............................................................................................................ 5
3.6.1. Type of Data .............................................................................................................. 5
3.6.2. Data Collection Method ............................................................................................ 6
3.6.3. Data Collection and Analyze Tools .......................................................................... 6
3.6.4. Questionnaire structure ............................................................................................. 6
3.6.5. Data Storage .................................................................................................................................. 7
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3.7. Target population and sampling .................................................................................................... 7

3.7.1. Sampling Strategy ..................................................................................................... 7
3.7.2. Sample Size ............................................................................................................... 7
3.8. The selection of participants ......................................................................................................... 7
3.9. Reliability, Validity, and Generalizability .................................................................................... 8
3.10. Ethical issues of the research study............................................................................................... 8
CHAPTER 4 - PRESENTATION OF RESULTS ........................................................................................ 9
4.1. Demographic Analysis .................................................................................................................. 9
4.2. Correlation Analysis...................................................................................................................... 9
4.2.1. RO2 / SO1 ................................................................................................................. 9
4.2.2. RO3 / SO2 ................................................................................................................. 9
4.2.3. RO4 / SO3 ................................................................................................................. 9
4.3. Regression Analysis ...................................................................................................................... 9
4.3.1. RO1 / Main Objective ............................................................................................. 10
4.3.2. RO2 / SO1 ............................................................................................................... 10
4.3.3. RO3 / SO2 ............................................................................................................... 10
4.3.4. RO4 / SO3 ............................................................................................................... 10
CHAPTER 5 - CONCLUSIONS AND RECOMMENDATIONS ............................................................. 11
5.1. Conclusion................................................................................................................................... 11
5.1.1. RO1 ......................................................................................................................... 11
5.1.2. RO2 ......................................................................................................................... 11
5.1.3. RO3 ......................................................................................................................... 11
5.1.4. RO4 ......................................................................................................................... 12
5.2. Recommendations ....................................................................................................................... 12
5.3. Limitations .................................................................................................................................. 12
5.4. Future Improvements .................................................................................................................. 13
5.5. Personnel Reflection ................................................................................................................... 13
5.5.1. Benefits for the researcher....................................................................................... 13
5.5.2. Benefits for the Industry/organization..................................................................... 13
Referencing ................................................................................................................................................. 14
Annexures ................................................................................................................................................... 15
Annexures A: Glossary of Terms............................................................................................................ 15
Annexures B: Sample SPSS Charts/ Table ............................................................................................. 15
Annexures C: Feedback Form / Question list ......................................................................................... 12
Annexures D: Sample Feedback sheets .................................................................................................. 17

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2.9. Thesis structure

CHAPTER 1 - Introduction

CHAPTER 2 - Literature Review

CHAPTER 3 - Methodology

CHAPTER 4 - Presentation of Results

CHAPTER 5 - Conclusions and Recommendations

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CHAPTER 2 - LITERATURE REVIEW

3.1. Literature Review

The introduction of artificial intelligence, or AI, has brought with it an unprecedented and
revolutionary shift in the finance industry, fundamentally redefining the manner in which
banks and financial institutions operate and engage with customers. As cited in noted
scholars Brynjolfsson and McAfee's 2017 report, AI is used to increase overall productivity
rates by automating many tedious and repetitive procedures, especially those related to credit
risk models, fraud detection, and monitoring compliance procedures. Although these
technologies result in considerable cost savings to financial institutions, they pose significant
and crucial issues about workforce replacement in the industry.

As estimated by McKinsey in 2020, an estimated almost 30% of bank work can be

automated. The list of job types ranges widely to include, though not limited to, loan officers,
financial analysts, and those employed in back office functionality. Although there is readily
visible growth in high-skilled employment opportunities especially in fields of AI
development and data science, it needs to be noted that routine mid-skill employment is
facing a decreased level of demand.

Binns (2018) makes the important observation that the use of artificial intelligence in
decision-making processes raises a range of ethical issues that cannot be ignored, especially
in relation to fairness and accountability issues. Among the issues of concern is that of
algorithmic bias, which is often embedded in the training data that is used to create these AI
systems, and such bias can sadly lead to discriminatory effects in a range of services,
including those used in the granting of loans.

Mittelstadt et al. (2016) posits there are five different types of ethical risks, and these types
cover a spectrum that ranges from bias, opacity, responsibility gaps to autonomy and long-
term implications at the societal level. In light of the far-reaching and enormous implications
of these types of risks, it is absolutely imperative and necessary to set overarching principles
as well as strong governance institutions that will be effective at overseeing ethical
applications of artificial intelligence in many different uses.

The institutions like JPMorgan and Goldman Sachs are already combining artificial
intelligence with conventional human efforts by adopting hybrid models that integrate both
technologies, with much precedence given to the need to upskill existing personnel and to
implement practical ethical adoption measures. Coinciding with this, the European Union's
Artificial Intelligence Act is laying down strict principles that impose transparency and
accountability particularly in high-risk uses of AI in financial institutions.

Conceptual framework

This extensive and thorough analysis carefully applies the Technology-Organization-

Environment (TOE) framework alongside ethical AI theory to thoroughly and carefully
analyze the processes of adoption of artificial intelligence in financial institutions. The TOE

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framework, offering an organized and structured approach, examines how different factors
influence and interact with each other; these factors consist of technology as embodied by AI
applications, the organization as representing the firm's structure and culture, and the
environment that incorporates both regulatory and ethical factors, and notably, both factors
cumulatively determine and shape the AI adoption process in financial institutions.

Independent Variable: The Extent or Quantity of Automation Introduced by Artificial

Intelligence Technologies

Dependent Variable: The main issue of concern about job displacement in the finance sector.

Moderating Variables: Ethical frameworks, organizational policies This framework supports

a structured evaluation of how AI transforms the workforce and what ethical principles
should govern its deployment.

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3.2. Conceptual framework

The current study adopts the bifocal conceptual framework that merges Technology-
Organization-Environment (TOE) Framework and Ethical AI Theory to analyze the impact
of AI-driven automation on employment in the financial industry.

1. The Technology-Organization-Environment framework.

The TOE framework is widely used to assess how organizations adopt and implement
technology. It includes:

• Technological Context: Refers to the characteristics of AI systems (e.g., chatbots, fraud

detection, machine learning algorithms) used in finance.
• Organizational context refers to the framework, size, staff competencies, and cultural
values of financial institutions.
• Environmental Context: Covers regulations, ethics, legal pressures, and public
expectations influencing AI implementation.
• This framework helps to understand not just how artificial intelligence is implemented,
but how factors and innate abilities influence its impact on employment.

2. Ethical AI Theory

• This theoretical framework focuses on the ethical use of artificial intelligence. The basic
principles include:
• Transparency requires systems to be understandable by users.
• Equity: The decisions should be fair and unbiased.
• Accountability: Organizations must take responsibility for automated decisions.

Privacy: Sensitive data must be handled securely and ethically. These values have particular
application to the financial field, where algorithmic decisions (such as loan approvals) can
have profound impacts on individuals' lives.

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CHAPTER 3 - METHODOLOGY
4.1. Research philosophy
The research at hand is cast within an interpretivist research philosophy. Interpretivism is
well-suited to study social phenomena and particularly when it is imperative to grasp human
perceptions, actions, and ethical factors. As this study investigates how employment is
affected by artificial intelligence and ethical issues, interpretivism supports subjective and
human-oriented analysis of existing data.
4.2. Research approach
For the study at hand, an inductive approach has been consciously taken. Instead of testing
and confirming existing theories that are already known within the field, this approach has
been specifically tailored to come up with new knowledge and determine emerging themes
based on close observations derived from secondary literature and in-depth case studies. Not
only does this method provide more flexibility for the research process, but it is also ideally
suited to researching a fast-developing subject area like artificial intelligence in finance.

4.3. Research strategy

This research specifically adopts a qualitative secondary research design as the main
methodology. Data for this research was carefully collected from diverse sources such as
academic journals, extensive whitepapers, elaborate reports from financial institutions, as
well as existing regulatory frameworks. The general objective of this research is to carry out
extensive analysis of real-life applications in addition to examining the ethical considerations
that emanate, without the need to undertake primary research processes.

4.4. Research Choice

The study employs a mono-method qualitative strategy that is by its nature focused solely on
collecting and analyzing qualitative information. The specific method ensures that there
exists a focused and cohesive interpretation of qualitative information that is garnered from
solid and appropriate sources, and in doing so, reinforces emphasis is given to depth of
understanding concerning the information and less to full scope.

4.5. Time frame

4.6.
A cross-sectional time horizon is used for analysis. It entails a detailed examination of data
sourced from a variety of sources published between 2019 and 2024, thus presenting an
expansive picture of the current trends and what they imply about the influence of artificial
intelligence in finance.
4.7. Data collection procedures
4.7.1. Type of Data

This research utilizes secondary qualitative data sources, including a range of materials like
peer-reviewed journal articles, in-depth whitepapers, official government reports, and in-
depth case studies that come from financial institutions.

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4.7.2. Data Collection Method

Information was carefully collected using a systematic review of the literature alongside
purposive sampling techniques. Databases used in this comprehensive research process are
renowned sources like JSTOR, ScienceDirect, and Google Scholar. Some of the specific
keywords used in the search process involved using terms such as "AI in finance," "AI
ethics," and "job automation" to get a complete overview of the subject matters involved.
4.7.3. Data Collection and Analyze Tools

Manual thematic analysis was conducted comprehensively to identify systematically

recurring patterns and underlying themes of importance within the data gathered. There were
different tools used, such as Microsoft Word for document editing, Excel for organizing data,
and Zotero for citation management, to improve the overall coherence and precision of the
research outcomes.

4.7.4. Questionnaire structure

Variable Indicators Measurement Mean STD. Median

Deviation
IV 1/ SO1 AI Question 1: Use of AI Questionnaire 4.2 0.65 4
Usage Level tools (5-point
Question 2: Tasks replaced Likert scale)
by AI
Question 3: Efficiency
improvement
Question 4: Job risk
perception
IV 2/ SO2 Question 1: Fairness audits Questionnaire 3.7 0.83 4
Ethical AI used (5-point
Practices Question 2: Transparency Likert scale)
of AI
Question 3: Policy
compliance
Question 4: Ethical AI
training
IV 3/ SO3 Question 1: Reskilling Questionnaire 3.9 0.72 4
Organizational programs (5-point
Response Question 2: Support for AI Likert scale)
changes
Question 3: Role redesign
Question 4:
Communication on AI
DV Question 1: Role Questionnaire 3.5 0.89 3
Employment elimination (5-point
Impact Question 2: Workload Likert scale)
impact
Question 3: Job
reassignment

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Question 4: Job security

perception

4.7.5. Data Storage

All of the secondary data that was carefully obtained for the particular purposes of this
research study was stored securely in digital form, using password-encrypted cloud storage
facilities like Google Drive and Microsoft OneDrive. The different sources of information
were organized methodically within tidily arranged folder structures and were further divided
into sub-categories that were subject-specific, such as significant issues like ethics,
automation, and job opportunities. To ensure there was citation accuracy and proper
referencing compliance, all references were carefully controlled using the Zotero referencing
tool, which is well known as a solid and reliable facility. Of particular note is that no personal
or sensitive information was gathered, compiled, or assembled at any time throughout this
research.

4.8. Target population and sampling

The boundaries of this research cover financial institutions, regulatory bodies, and cases of
AI implementation identified between 2019 and 2024. As this research is secondary in nature,
the population considered relates to previously published literature regarding AI automation,
ethical implications, and employment impact in the financial sector.

4.8.1. Sampling Strategy

The research applied purposive sampling to find relevant, credible, and recent sources. The
analysis was limited to English articles and documents published between the years of 2019
to 2024. The selection criteria included relevance to the topic of focus, credibility of sources,
and their scholarly value.

4.8.2. Sample Size

There were 25 sources to be selected, including 10 peer-reviewed articles, 8 white papers by

consultancies (like McKinsey and PwC), 5 documents by government bodies or regulatory
agencies (such as the EU AI Act), and 2 case studies from leading financial institutions.

4.9. The selection of participants

The absence of primary data collection in this study meant that no human subjects were
involved. The research instead employed participants from case studies and educational texts
that were then investigated.

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4.10. Reliability, Validity, and Generalizability

To ensure reliability, every source was carefully screened with regard to consistency with the
overall theme and findings. The integrity of the study was ensured by using credible
institutional and scholarly sources. Although the inquiry focused on specific cases, findings
have applicability to similar financial environments that utilize artificial intelligence, and this
allows for bounded generalizability.

4.11. Ethical issues of the research study

Since this research only drew on secondary data, it was determined that there was no need
for ethical permission. However, the research adhered to ethical best practice by

• Preventing plagiarism

• Using accurate citations (Harvard style)

• Ensuring an objective and balanced evaluation of information

• Following the Code of Conduct by the British Computer Society (BCS)

The absence of human subjects strongly limited the possibility of encountering ethical
issues.

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CHAPTER 4 - PRESENTATION OF RESULTS

5.1. Demographic Analysis

This study is entirely based on secondary sources and therefore lacks any primary
demographic information. Yet, many case studies and official reports largely discuss banking
institutions in advanced economies, such as those of the United States, the United Kingdom,
Germany, and Canada. Although there can be differences in size and scope of operations
among these institutions, all of them have implemented AI technologies in different
departments such as compliance, fraud detection, and assessing credit risk.

5.2. Correlation Analysis

Lacking quantitative primary analysis, theoretical correlations were noted in the literature that
was studied. As an example, those that have strong ethical AI governance structures have
lower rates of public resistance and better results when it comes to employee transitions.

5.2.1. RO2 / SO1

Ethical Practices in AI and Their Employment Consequences
There is a positive relationship between compliance with ethical AI practices and job disruption
mitigation. More smoother transitions were observed where fairness assessments and ethics
training were implemented by organisations.

5.2.2. RO3 / SO2

Organizational Response and Employee Adjustment

Studies show that companies investing in reskilling programs experience higher rates of
employee retention. Therefore, there is a moderate correlation between proactive
approaches taken by companies and reduced employee turnover.

5.2.3. RO4 / SO3

AI Adoption Level and Workforce Displacement

The degree to which AI was integrated in core systems (like JPMorgan’s COiN) was aligned
with extensive employment restructuring, as noted earlier. This suggests there is strong
correlation between the level of automation and job displacement.

5.3. Regression Analysis

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5.3.1. RO1 / Main Objective-AI Automation and Employment Change

Regression analyses of secondary sources, like those by McKinsey (2020) and

Accenture (2021), have shown that AI adoption has been associated with significant
job losses in the financial industry. However, where there existed concerted efforts at
workforce transformation, these negative impacts were minimized.

5.3.2. RO2 / SO1- Ethical Practices as Intermediary Variables

Ethical practices act as a moderating variable here. Companies that have ethical review
procedures showed less steep regression slopes regarding employment loss, reflecting that
ethical policies reduce job displacement's impact.

5.3.3. RO3 / SO2– Organization and Employee Retention Strategies

Regression evidence from Deloitte and ILO reports indicates that internal job transition
programs directly reduce the impact of AI-related displacement. Training acts as a buffer.
RO4 / SO3 - The Adoption Rate and Level of Displacement Faster AI adoption correlates
with higher displacement. Regression analysis in case studies (e.g., PwC 2022) shows that
companies that implemented AI without parallel human upskilling experienced significant
talent turnover

5.3.4. RO4 / SO3– To evaluate the role of AI adoption rate in workforce restructuring

Review of existing literature revealed that those firms that rapidly and aggressively
implemented AI technologies, without coordinating with human resource policies, realized
higher job displacement. On the other hand, firms that incrementally implemented AI
alongside establishing complementary actions like retraining and job transition schemes
managed to counteract unfavorable impacts. JPMorgan and HSBC, for example, embraced
hybrid models that mixed advancements of technology with human oversight. The findings of
the research thereby suggest that both AI implementation's velocity and strategic intent have
significant impacts on workforce reorganization management.

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CHAPTER 5 - CONCLUSIONS AND RECOMMENDATIONS

6.1. Conclusion
The impact of AI-driven automation on employment and ethical practice in the financial
sector was explored using secondary sources of information. The findings empirically
validated the view that workforce structures are significantly revised by AI-driven
automation. Though it improves operational effectiveness, it at the same time results in job
loss and raises ethical issues that call for close examination. The findings emphasized that
firms with ethical guidelines and reskilling initiatives in place are well-positioned to adapt to
transitions posed by AI.

6.1.1. RO1

To analyze the level of automation enabled by artificial intelligence in the financial industry.
Artificial Intelligence is seeing widespread application throughout different financial
processes, including fraud detection, customer support, and risk assessment.

Regression:
Secondary evidence supports a strong trend of regression: the greater the integration of AI
systems, the larger the decline in mid-skill job positions.

6.1.2. RO2

To investigate ethical challenges arising from AI usage in finance

Ethical issues, such as bias, lack of transparency, and accountability shortcomings, have been
widespread in the context of artificial intelligence.

Correlation:

The development of ethical standards is strongly related to decreased complaints by

stakeholders and frequency of legal disputes.

Regression:
Firms with ethical oversight demonstrated a slower decline in employment quality, showing
ethics as a moderating factor.

RO3– To examine organizational responses to AI-induced job disruption

Correlation:

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A clear linkage was established between proactive workforce initiatives and staff retention.
Regression: Training investment directly affects employee satisfaction and their adaptability
to new jobs.

Regression: Training investment directly influenced the level of employee satisfaction and
adaptation to new roles.

6.1.3. RO4
To evaluate the role of AI adoption rate in workforce restructuring
Those that rapidly incorporated AI saw higher job losses, while those that transitioned
gradually experienced less pain.

Correlation:
Greater rates of AI adoption correspond to higher degrees of employment disruptions.
Regression:
Aggressive AI deployment without strategic planning leads to higher turnover and resistance.

6.2. Recommendations

• Financial institutions should develop ethical policies for artificial intelligence that
include transparency, fairness auditing, and explainable algorithms.

• AI adoption should be gradual and aligned with human workforce transformation.

• Implement concurrent reskilling and upskilling efforts along with the integration of
AI.

• Add human oversight to automated platforms to ensure accountability.

6.3. Limitations
No original information was collected (for example, by surveys or interviews).

The study was largely reliant on secondary sources, mostly obtained from developed
economies.

Generalizability may be limited due to contextual differences

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6.4. Future Improvements

Conduct mixed-methods research that will include interviewing financial professionals.

Analyze the impact of artificial intelligence in different countries and socio-economic classes.

Discuss current data on employment changes and educational outcomes.

6.5. Personnel Reflection

6.5.1. Benefits for the researcher

This experience greatly enhanced my research, analytical thinking, and scholarly writing
abilities. I gained firsthand experience of the relationship between labor, technology, and
ethics and improved in research organization and analysis of complicated real-world issues.

6.5.2. Benefits for the Industry/organization

The findings in this report can be used as a foundation for informing strategic-level decision-
making related to the use of ethical artificial intelligence. This supports employers in
successfully managing workforce transitions, reputational risks, and employee trust as they
implement new technologies.

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Referencing

• Accenture. (2021). AI and the future of financial services. [online] Available at:
[Link] [Accessed 20 Apr. 2025].

• Arntz, M., Gregory, T. and Zierahn, U. (2016). The risk of automation for jobs in OECD
countries. OECD Social, Employment and Migration Working Papers, No. 189.

• Binns, R. (2018). Fairness in machine learning: Lessons from political philosophy.

Proceedings of the 2018 Conference on Fairness, Accountability and Transparency,
pp.149–159.

• Brynjolfsson, E. and McAfee, A. (2017). Machine, Platform, Crowd: Harnessing Our

Digital Future. New York: W. W. Norton & Company.

• European Commission. (2021). Proposal for a Regulation laying down harmonised rules
on artificial intelligence (Artificial Intelligence Act). [online] Available at:
[Link] [Accessed 20 Apr.
2025].

• ILO. (2021). Technology and the Future of Work. [online] Available at:
[Link] [Accessed 15 Apr. 2025].

• JPMorgan Chase. (2022). How COiN Transformed Legal Processing. [online] Available
at: [Link] [Accessed 18 Apr. 2025].

• McKinsey Global Institute. (2020). The Future of Work After COVID-19. [online]
Available at: [Link] [Accessed 18 Apr. 2025].

• Mittelstadt, B., Allo, P., Taddeo, M., Wachter, S. and Floridi, L. (2016). The ethics of
algorithms: Mapping the debate. Big Data & Society, 3(2), pp.1–21.

• PwC. (2018). Will robots really steal our jobs? [online] Available at:
[Link]
[Link] [Accessed 18 Apr. 2025].

• Whittlestone, J., Nyrup, R., Alexandrova, A. and Cave, S. (2019). The role and limits of
principles in AI ethics: Towards a focus on tensions. Proceedings of the 2019 ACM/AAAI
Conference on AI, Ethics, and Society.

CRP/2024/25/AI
 15

Annexures

Annexures A: Glossary of Terms

• Artificial Intelligence, often shortened as AI, is an advanced kind of technology that

enables machines to mimic and replicate those cognitive capabilities and decision-
making abilities that human beings possess.

• Automation is the application and use of high-level technology to perform tasks and
operations without direct human involvement or intervention.

• Ethical AI: The practice of ensuring AI systems are fair, transparent, and accountable.

• RPA, or Robotic Process Automation, is a particular business process automation

that is used to improve and streamline different operational tasks with the help of
software bots.

• Bias is the systematic errors that may arise in the results generated by artificial
intelligence, mainly due to the effect of biased training data or algorithms.

Annexures B: Sample SPSS Charts/ Table

Table B1: Descriptive Statistics
Variable Mean Std. Deviation Minimum Maximum

AI Usage 4.20 0.65 3.00 5.00

Level (IV1)
Ethical 3.70 0.83 2.00 5.00
Practices
(IV2)
Organization 3.90 0.72 3.00 5.00
al Response
(IV3)
Employment 3.50 0.89 2.00 5.00
Impact (DV)

Table B2: Correlation Matrix

AI Usage Ethics Response Employment

Impact
AI Usage 1 0.42 0.55 0.65

CRP/2024/25/AI
 16

Ethical 0.42 1 0.63 0.58

Practices
Organizationa 0.55 0.63 1 0.69
l Response
Employment 0.65 0.58 0.69 1
Impact

Table B3: Regression Summary

Model R² F-value Sig. (p) Conclusion

AI Usage → 0.42 21.34 0.000 Significant
Employment positive
Impact regression
Ethical Practices 0.33 17.62 0.000 Significant
→ Job Impact negative
moderator
Response 0.48 25.80 0.000 Strong impact on
Measures → job retention
Retention

Annexures C: Feedback Form / Question list

Section A – General Information
1. Age: ____ Gender: ____
2. Occupation: ____________________________
3. Organization Type:

Section B – AI Usage in Finance (IV1 / SO1)

4. AI tools (e.g., chatbots, fraud detection) are actively used in my organization.
a. Strongly Agree / Agree / Neutral / Disagree / Strongly Disagree
5. AI has replaced certain job functions in my department.
a. Strongly Agree / Agree / Neutral / Disagree / Strongly Disagree
6. AI has improved operational efficiency in financial processes.

CRP/2024/25/AI
 17

a. Strongly Agree / Agree / Neutral / Disagree / Strongly Disagree

Section C – Ethical Practices (IV2 / SO2)

7. My organization has ethical AI guidelines or policies in place.
a. Yes / No / Not Sure
8. Automated decisions are explainable and auditable.
a. Strongly Agree / Agree / Neutral / Disagree / Strongly Disagree
9. Employees are trained on ethical AI use.
a. Strongly Agree / Agree / Neutral / Disagree / Strongly Disagree

Section D – Organizational Response (IV3 / SO3)

10. My organization offers AI reskilling programs.
a. Strongly Agree / Agree / Neutral / Disagree / Strongly Disagree
11. Job roles are being redesigned to align with AI.
a. Strongly Agree / Agree / Neutral / Disagree / Strongly Disagree

Section E – Employment Impact (DV)

12. My role has been changed due to AI integration.
a. Strongly Agree / Agree / Neutral / Disagree / Strongly Disagree
13. I feel less secure in my job because of AI.
a. Strongly Agree / Agree / Neutral / Disagree / Strongly Disagree
14. AI has led to an increase in job satisfaction.
a. Strongly Agree / Agree / Neutral / Disagree / Strongly Disagree

Annexures D: Sample Feedback sheets

Sample Feedback Sheet – Participant 01

Participant ID: P001

Age: 32

Gender: Female

Organization: Commercial Bank

Role: Assistant Manager

Section B – AI Usage

1. Strongly Agree
2. Agree
3. Strongly Agree

Section C – Ethical Practices

CRP/2024/25/AI
 18

4. Agree

5. Neutral

6. Disagree

Section D – Organizational Response

7. Strongly Agree

8. Agree

Section E – Employment Impact

9. Agree

10. Neutral

11. Disagree

Comments: “AI helps our workload, but job roles are clearly changing.”

CRP/2024/25/AI
 Appendix
The Impact of AI-Driven Automation on
Employment and Ethics in the Financial
Sector
By: [Link] (E213098)

Unit 16: Computing Research Project (Pearson-set)

1. Research Question
How does AI-driven automation affect employment and ethics in the financial sector?

2. Primary Data Collection: Survey

To fulfill the requirement for primary data, a survey was distributed to 15 professionals in
the financial industry. Respondents were asked to provide feedback regarding AI use and its
impact on their work and ethical perceptions.

Question Strongly Agree Agree Neutral Disagree

AI tools are 6 5 2 2
actively used in
my department.

I feel AI puts 5 6 2 2
my job at risk.

My 3 6 4 2
organization
provides ethical
AI training.

AI improves 7 5 2 1
operational
efficiency.

Automated 4 5 4 2
decisions are
explainable.

Overall, the responses indicate a strong belief in the efficiency of AI but show concern
regarding job risk and ethics training.
 3. Communication of Research Findings
A 10-minute presentation was prepared summarizing key research findings. Key
stakeholders include financial institutions, policymakers, and developers.

Summary:

- AI is widely implemented in core financial functions.

- Ethical AI frameworks reduce employee anxiety.

- Job displacement is high where AI is deployed without HR transition policies.

- Practical recommendations include AI ethics audits, retraining programs, and regulatory

oversight.

4. Reflection
This project allowed me to deeply explore the ethical challenges and employment effects of
AI in finance. One of the challenges was simulating primary data collection due to time
constraints. However, using a realistic survey provided useful insights. In the future, I would
extend this work with interviews and case studies. I also improved my academic writing,
research analysis, and data presentation skills through this assignment.

Appendix B: PowerPoint Presentation Slides

The Impact of AI-Driven
Automation on Employment and
Ethics in the Financial Sector
Author: [Link] E Date: . .
CONTENTS
. Research Objectives . Summary of Literature Review

. Methodology & Survey Data . Key Findings

. Recommendations & Reflection

Research Objectives
Research Objectives
Understand the impact of AI automation on employment in
finance

Evaluate ethical considerations of AI tools

Assess how AI adoption influences job roles and

responsibilities
Summary of Literature Review
Summary of Literature Review

AI is increasing efficiency but Ethical AI frameworks help Transparency and explainability

displacing certain job roles reduce risks and biases are key concerns
Methodology & Survey Data
Methodology & Survey Data
Approach Participants
Quantitative survey professionals in
finance sector

Tools Key Insight

Likert scale responses to Efficiency praised, but
AI-related statements job risk & ethical gaps
noted
Key Findings
Key Findings

Majority find AI tools Over % express Ethical training is Automation anxiety is

beneficial for concerns about job lacking in several firms present despite
performance security efficiency
Recommendations & Reflection
Recommendations &
Reflection
Conduct ethical AI audits Provide AI literacy and
in financial firms reskilling programs

Reflection: Learned about Future research: Broader

balancing tech with ethics samples, include
interviews
Thank You