“The easy idea is you just replace juniors with an AI tool,” a Deutsche Bank chief strategy officer told the New York Times.
BUSINESS INSIDER
Incoming junior Wall Street analysts could be in danger of losing their jobs to AI, sources within banks told the New York Times.
Big firms are reportedly mulling whether to pull back on hiring new analysts as Wall Street leans more heavily on AI, several people familiar with the matter at Goldman Sachs, Morgan Stanley, and other banks told the publication this week.
Incoming classes of junior investment-banking analysts could up being cut as much as two-thirds, some of the people suggested, while those brought on board could fetch lower salaries, on account of their work being assisted by artificial intelligence.
“The easy idea is you just replace juniors with an AI tool,” Christoph Rabenseifner, the chief strategy officer for technology, data, and innovation at Deutsche Bank, told the Times, though he noted it would still be necessary to keep human staff.
Banks have already been testing AI software, employing them under monikers like “Socrates,” the report found.
A Goldman Sachs representative told Business Insider the bank was still in the “early stages” of exploring AI technology, adding that it was “pleased” with the results it had seen so far. But scaling back hiring is out of the picture at the moment:
“We have no current plans to alter our incoming analyst classes as a result of these efforts,” the spokesperson said.
Deutsche Bank told Business Insider it was too early to comment on any potential job cuts. Morgan Stanley did not immediately respond to a request for comment.
