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Bankers say the next generation of young Wall Street analysts are at risk of being replaced by AI 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, people familiar with Goldman Sachs, Morgan Stanley and other banks say. revealed this week.
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 easy 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 CEO Larry Fink told the Financial Times last year that AI isbig potential,” he said, later adding that asset managers were spending “an enormous amount of time” on artificial intelligence.
Furthermore, Goldman Sachs 300 million workers While AI could have a major impact, the McKinsey report found that: 12 million workers It could be completely replaced by AI by 2030.
Consulting firm Accenture has an even more extreme outlook for industry disruption, predicting that AI could eventually replace or complement nearly every field. 75% of total 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.”