- Big Wall Street banks may backtrack on hiring plans to increase their reliance on AI.
- Hiring of new junior analysts could ultimately be cut by up to two-thirds, people familiar with the matter told The New York Times.
- Banks are already considering AI software that uses nicknames, the people said.
New young Wall Street analysts could be at risk of losing their jobs to AI, bankers told The New York Times.
As Wall Street increases its reliance on AI, major firms are considering whether to pull back on hiring new analysts, several people familiar with Goldman Sachs, Morgan Stanley and other banks said this week. he told the magazine.
Some sources say investment banking's new hires for junior analysts could be cut by up to two-thirds, while those who join will receive lower salaries as their work is aided by artificial intelligence. suggested that it was a possibility.
Christoph Ravenseifner, Deutsche Bank's chief strategy officer for technology, data and innovation, told the Times that “the simple idea is to just replace junior employees with AI tools,” but still human staff. He pointed out that it is necessary to maintain the
Banks are already testing AI software, deploying it with nicknames such as “Socrates,” according to the report.
A Goldman Sachs representative told Business Insider that the bank is still in the “early stages” of researching AI technology, adding that it is “pleased” with the results so far. However, there are no plans to reduce employment at this time.
A spokesperson said, “As a result of these efforts, there are currently no plans to change the class of new analysts.''
Deutsche Bank told Business Insider it was too early to comment on possible job cuts. Morgan Stanley did not respond to a request for comment.
Some financial industry executives have publicly hinted at future changes in the workplace. JPMorgan President Jamie Dimon said in his annual letter to shareholders that artificial intelligence has the potential to “reduce certain jobs and roles.”
BlackRock chief Larry Fink told the Financial Times last year that AI had “huge potential” to increase employee productivity, later adding that the asset manager had “huge amounts of time” to invest in artificial intelligence. He added that he was spending .
Additionally, Goldman Sachs estimates that approximately 300 million workers could be significantly impacted by AI, while a McKinsey report estimates that by 2030, 12 million workers will be fully employed. It is said that there is a possibility that it will be taken over by AI.
Consulting firm Accenture has an even more extreme outlook for industry disruption, predicting that AI could eventually replace or supplement nearly 75% of all working hours in the banking sector.
Jay Hollein, head of investment banking at JPMorgan, told the Times that Wall Street analysts “will be able to do tasks in 10 seconds that would take 10 hours thanks to AI.” “My hope and belief is that it will make the job more interesting.”
