Abstract for: Inefficient use of Human Capital in Finance: the impact of AI and the risk of Unemployment

In Kazakhstan, the gap between the higher education system and the actual needs of the labor market is enhancing, especially in the financial sector. Graduates collide with difficulties in finding employment, and an oversupply of specialists leads to lower salaries and higher unemployment. An additional challenge is automation, which reduces the demand for traditional professions. This can lead to economic instabilities and social crises without effective approach. The purpose of our work is to conduct a comprehensive analysis of the labor market in Kazakhstan, forecasting the need for financiers considering factors like the development of AI, the cost of education and the financial aspects of universities. The system dynamics method is used to account for interrelated processes, instability and time delays in the system. We expect that our model, as a tool, will help employers, universities as well as government agencies to adjust educational programs, do predictions of demand for specialists in labor market and develop measures to stabilize the labor market taking into consideration technological trends. By using system dynamics, the model can be tested by different situations without spending a ton on experiments. This helps us see what happens with current educational policies, the growth of automation and AI, and come up with ways to avoid problems in Kazakhstan's job market.