Artificial Intelligence is Coming to Wall Street: Banks Reportedly Considering Cutting Analyst Hiring by Two Thirds - Apple Latest
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Artificial Intelligence is Coming to Wall Street: Banks Reportedly Considering Cutting Analyst Hiring by Two Thirds

"The simple idea is that you just replace junior people with AI tools," a Deutsche Bank chief strategy officer told the New York Times.
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  • Wall Street's big banks may be scaling back their hiring programs as they rely more heavily on artificial intelligence.

  • Sources told The New York Times that new hires of junior analysts could be reduced by two-thirds.

  • Banks are already exploring AI software, sources said.

Bank insiders tell the New York Times that soon-to-be junior Wall Street analysts could be in danger of losing their jobs to artificial intelligence.

Several knowledgeable sources at Goldman Sachs, Morgan Stanley and other banks told The New York Times this week that the big firms are reportedly mulling whether to withdraw their plans to hire new analysts as Wall Street relies more heavily on artificial intelligence.

Some of them say upcoming junior investment banking analysts could be cut by as much as two-thirds, and those new to the job could be paid even less because their work requires the help of artificial intelligence.

"The simple idea is that you just replace junior staff with AI tools," Christoph Rabenseifner, Deutsche Bank's chief strategic officer for technology, data and innovation, told The Times.

The report found that banks are already testing AI software, which they have named "Goggles".

A Goldman Sachs representative told Business Insider that the bank is still in the "early stages" of exploring AI technology, adding that it's "pleased" with the results it's seen so far. But there are no plans to scale back hiring:

"We have no plans at this time to change our analyst classes as a result of these efforts," the spokesman said.

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Deutsche Bank told Business Insider that it was too early to comment on any possible layoffs. Morgan Stanley did not immediately respond to a request for comment.

Some financial industry executives have publicly hinted at future workplace changes. In his annual letter to shareholders, JPMorgan Chase boss Jamie Dimon said AI has the potential to "reduce certain job categories or roles".

Larry Fink, BlackRock's chief executive officer, told the Financial Times last year that artificial intelligence has "huge potential" to improve worker productivity, adding later that the asset manager is spending "a lot of time" on artificial intelligence. He later added that the asset manager was spending "a lot of time" on artificial intelligence.

In addition, Goldman Sachs estimates that about 300 million workers could be significantly affected by AI, while a report by McKinsey found that by 2030, 12 million workers could be completely replaced by AI.

Consulting firm Accenture (Accenture) on the industry disruption of the outlook more 耑, predicting that artificial intelligence may eventually replace or supplement the banking industry nearly 75% of working time.

"Speaking of Wall Street analysts, Jay Horine, director of investment banking at JPMorgan Chase, told the Times, "Artificial intelligence will enable us to do in 10 seconds what takes 10 hours." My hope and belief is that it will make work more fun."

Read the original article on Business Insider

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