Laid off from ER, 10 months unemployed. Is AI killing this industry? What now?
Hey everyone, I'm in a tough spot and looking for some brutally honest feedback. I was laid off from a boutique equity research firm about 10 months ago, and since then, I haven't been able to land a single offer. I've had less than a handful of interviews out of the >200 jobs I applied, but nothing has stuck. The market feels incredibly cold, and I'm starting to worry that my career path is obsolete.
I can't help but wonder if AI is replacing equity research. I'm seeing more and more of such narratives floating thus couldn't help but wonder. Are the days of the traditional ER analyst numbered? Is my experience (5YOE) no longer a valuable commodity?
I've been trying to stay in the industry, but the rejections are taking their toll. My savings are dwindling, and I'm starting to feel desperate.
My questions for you all are:
- Is this industry getting killed by AI and automation? Are my fears valid, or is the reality different at the major firms?
- Should I be looking at other fields? If so, what are some logical pivots from equity research that would value my skill set (e.g., financial modeling, company analysis, writing)?
- How do I explain a 10-month unemployment gap? This is becoming the elephant in the room in every interview, and I'm struggling to frame it positively. I was even scared to apply to business school because of this.
Any advice or perspective would be a huge help. I'm feeling pretty lost right now and could use some guidance. Thanks.
The challenges you're facing are tough, but you're not alone, and there are actionable steps you can take. Here's a breakdown based on the most helpful WSO content:
1. Is AI killing equity research?
AI is undoubtedly reshaping the landscape of equity research, but it’s not outright killing the industry. According to WSO threads, automation and AI tools are displacing lower-value tasks like data collection, basic modeling, and report generation. However, higher-value work—such as nuanced analysis, client relationship management, and strategic insights—still requires human expertise. The key is to position yourself as someone who can leverage AI tools to enhance productivity rather than be replaced by them.
2. Should you pivot to another field?
If the equity research market feels saturated or stagnant, pivoting could be a smart move. Logical transitions for someone with your skill set include: - Corporate roles: Investor Relations (IR), Corporate Development, or CFO-track positions. - Buy-side opportunities: Hedge funds, private equity, or asset management (though entry-level roles in AM are also under pressure from AI, as noted in WSO discussions). - Tech and data-driven roles: Consider roles in fintech, data analytics, or even product management, where your financial modeling and analytical skills can shine. - Consulting: Your ability to analyze companies and industries could translate well into strategy or management consulting.
3. How to address the 10-month unemployment gap?
This is a common concern, but it’s all about framing. Here’s how you can tackle it: - Upskilling: Highlight any certifications, courses, or projects you’ve undertaken during this time. For example, if you’ve learned Python, machine learning, or advanced financial modeling, emphasize how these skills make you more competitive in a tech-driven market. - Freelance/Consulting Work: If you’ve done any freelance equity research, consulting, or even pro bono work, mention it. It shows initiative and keeps your skills sharp. - Networking: Explain that you’ve been actively networking and exploring opportunities to find the right fit, rather than rushing into a role that doesn’t align with your long-term goals.
4. Is business school a good idea?
Business school can be a great way to reset your career, but the 10-month gap might raise questions. To mitigate this: - Use your application essays to frame the gap as a period of reflection, skill-building, and strategic career planning. - Highlight your achievements and how an MBA will help you pivot or advance in your career.
5. Immediate next steps:
Remember, the industry isn’t dead—it’s evolving. Your ability to adapt, upskill, and position yourself as a value creator will determine your success. Keep pushing forward!
Sources: Work at top AM -- AI will virtually kill of entry-level roles in AM over the next 5yrs, Will robots replace your consulting or financial career?, I was in Equities Research for 10 years in Asia – Ask Me Anything, Transition from RE Development to REPE, Are Hedge Fund Employees Structurally F***ed
Frankly, you should have broadened your search to non-ER roles after like month 3. 10 months begs the question of “what have you been doing for almost a year?” Have you been networking or just cold applying online? If you have been networking, what has been people’s feedback for you on hiring cadences.
What else have you been up to for 10 months?
You're right, and believe me, I've been asking myself that same question every day. I didn't sit around for 10 months. I've been applying to everything—not just ER, but also S&T, IBD, IR, ECM to name a few—and I've reached out to every single connection I have. I've tried everything possible.
But it's been a complete nightmare. People I thought were mentors or friends have either given me vague, fake promises, ghosted me after a single meeting, or just given me the most superficial replies. It feels like I've exhausted every lead and burned through all my goodwill.
Gotcha - your net is not wide enough. As others mentioned here look at anything remotely related to Finance, not just “high finance”. FP&A, Strategic Finance, Corp Dev, Strategy, etc.
Understood on your network not being as helpful, keep chugging on cold outreach though and hopefully something will point you in the right direction. What avenues are you using to find jobs? Just Linkedin?
What sector did you cover? If it's something generic like consumer, good luck.
I think you're absolutely right. AI is definitely impacting this industry. Lowest skill jobs (offshores) will go first but there definitely still seems to be demand for hiring mid-level people (like you, senior associate level).
Everywhere you're looking sounds like logical pivots. It didn't sound like you were looking at buyside? Even beyond ER buyside there's like manager research, allocation etc. FP&A and other corporate roads.
I covered energy, specifically upstream and midstream. You're probably right, not exactly a hot sector either, so maybe that's part of the problem.
I appreciate you saying that about mid-level roles still being in demand, but it just makes the rejections sting even more. If the demand is there, why am I still sitting here? It feels like the industry is looking for some new hybrid analyst that I'm just not.
As for other fields, I've looked at all of them. All of my applications to buyside roles result in nothing. Most of them don't even bother to send out a rejection email. A few of them even ghosted me after the final round interview. At least for sellside I'm getting proper responses and feedback, much more tolerable than endlessly waiting. And I've looked at FP&A and other front-/mid-office roles but it's extremely discouraging seeing every role getting hundreds of applicants within a few days. I feel like I'm stuck between industries, not good enough for finance and overqualified for anything else. I'm honestly not sure where to even look anymore.
Man, this was my nightmare when I was in my twenties and single. I’m grateful every day I’ve been failing upwards my whole career.
I don’t think you’re doing anything wrong. And I also don’t think AI is killing traditional ER roles.
I think it’s simply that competition is fierce in high finance. You have to know people and those people have to be willing or powerful enough to secure you interviews. It’s really that simple.
It’s a bunch of smart and capable people all gunning for the same roles. And as your unemployment gap grows, it make you seem like you have a defect or something. People are like why should I hire someone who got fired and can’t find a job, when I can hire someone who’s currently employed and looking for a better opportunity.
You mention you savings are dwindling. Can your partner float you or are you single? Can your folks float you or are they poor?
As you are approaching the one year mark of unemployment, I would suggest broadening your search to any type of white collar job opening you can find, and then tailoring your resume to make it seem like you have direct skills for that job. Embellish that resume man.
And as to your firing and struggle to find a job, might be time to employ the smoke frog tactic of straight up lying to secure that first round interview. For example, you didn’t get fired or laid and off and have been struggling to find a new job. You resigned and have been caring for a terminally ill family member and now another family member is taking over the full time care and you’ve just started looking again.
You feel me?
Happy for you. But year, it really sucks to be unemployed in this day and age.
I'm currently living alone. No partner, and my folks can't help. This is all on me.
As for the "smoke frog" tactic you mentioned, it's a tough pill to swallow. I've always been honest and straightforward, but I can see why people are driven to that point. I feel like I'm at a crossroads and have to choose between my integrity and just getting a job.
Given your experience, what are some specific white-collar roles or fields (non-finance perhaps) you would recommend that might be more open to someone like me? I'm trying to be realistic and just need to get back on my feet, and I'm honestly not sure where to look anymore.
Integrity is all a matter of perspective. Look at Trump, how’s his dishonesty worked out for him? Pretty good I’d say lol.
I mean you’re not stealing or cheating on your girlfriend man. You’re trying to get a job. If fibbing a little on your firing rubs you the wrong way, high finance is going to be a tough place for your to survive long term.
Have you looked at roles like FP&A, Corp dev, IR, middle office IB, consulting in your coverage field, treasury, etc?
You worked for five years so I would assume living bare bones would have had your savings last more than a year. Did you have a savings leak?
Busines school is also a nice way to reset, but that would dig you into a 200k hole so keep that in mind. And when the rubber hits the road, you might have to swallow your pride and take a retail job or something just to have some cash come in.
My final piece of advice, considering opening up your geographical search range. Since your single, search across the entire country and that could your ticket to a new gig.
Something like an insurance brokerage too? If there is one focused on O&G it could potentially be a fit. Also look into industry-specific consulting or accounting.
Crazy take, but could you work for 2-3 years in the field - say oil field, oil rig, exploration, something upstream or downstream in oil or natural gas exports? Not for the money, but for the experience. I’m not saying as a physical laborer but maybe a project manager or even something entry level?
Fast forward, you will probably one of the few finance/analytical professionals with actually hands on work experience in operations and understanding of the big picture.
That opens you up for unique opportunities and relationships.
I did something like that in healthcare + real estate investment and development + accounting, and taking a minimum wage job (with a plan) gave me massive credibility.
It’s probably that your boutique equity research firm has poor brand name and you stayed there for 5 years
I’m assuming you’re in Texas but you should apply to all the energy companies in Texas + big utility / power companies like Dominion, Constellation, and Nextera
Any updates?
Not sure if AI is killing the industry yet, but it will at least cut headcount by half over the next 5yrs (the losers will be most associates and bottom third of analysts). The top half will be fine
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