Is AI going to replace everyone but the senior analysts and PMs?
What do you guys think?
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Based on the most helpful WSO content, AI is expected to significantly impact entry-level roles, particularly in asset management (AM) and other industries. Over the next five years, many entry-level positions, such as associates, are predicted to be heavily reduced—some estimates suggest up to 80% of these roles could be cut by the late 2020s. This is due to advancements in AI tools that can automate tasks like data collection, building slide decks, and even creating complex models.
However, while AI will likely replace many repetitive and lower-value tasks, it may also shift the focus of remaining roles toward higher-value work. Analysts and PMs (Portfolio Managers) could benefit in the short term by spending more time on strategic analysis and decision-making rather than mundane tasks. That said, even these roles might face challenges in the long term as AI continues to evolve.
The key takeaway is to position yourself as a "value creator" in your organization. Taking on more responsibility, being a team player, and developing unique skills can help build a personal moat around your career. While AI will disrupt many roles, those who adapt and focus on irreplaceable, relationship-driven, or high-impact work will have better chances of thriving.
Sources: Work at top AM -- AI will virtually kill of entry-level roles in AM over the next 5yrs, Work at top AM -- AI will virtually kill of entry-level roles in AM over the next 5yrs
I don't think so
I don’t understand the logic in general bc then who will be the senior people in 10 years if there are no junior people now?
Probably not. But in a few years I'll be a senior analyst so that should help
Junior analyst hiring will fall in my view. Many $1bn + SMs don’t even have many juniors and seldom hire. Senior analyst does it all, from mgmt meetings to models to idea generation to channel checks to write ups to tracking alt data. Again not uncommon at plenty of places (though those places don’t get a ton of attention here on WSO). Including my own fund…
Need for analyst pipeline is important for future but that can offset with higher senior analyst comp / lower attrition. Many firms with bunch of 30+ yr old senior analysts making $2-10 a year and low #, if any juniors, all while team has low turnover.
Agreed. In so much more efficient don’t need a junior. The value add relative to expense isn’t there. Kinda dark tbh
There are not that many funds, apart from pods and mutual funds, that have real junior level roles. At a HF, it takes 1 year to get fully ramped up and after that, the only difference between you and a Senior Analyst is experience in an industry and pattern recognition, which AI can not replace.
What do you mean AI can’t do pattern recognition?
No they’ll still need juniors to blame on pnl. That’s probably worth 150k base for them
This is really the key and applies to all white collar jobs. In most places juniors are ultimately not hired to do productive work for the business but to protect the management.
Everyone saying no is being pretty naive in my view. It will 100% have an impact on junior hiring in L/S. You can debate whether it’s going to take shape in the form of slower hiring growth or a decline in hiring - and you can debate how much you think it will decline.
The key skill you must monetise is judgement. Is this a good bet or a bad bet. AI will probably not be here for a while and even when it will be, it will take time for humans to trust them enough for wholesale automation of the experienced analyst/specialist role.
Modelling + analysis are the plumbing for judgement, AI will absolutely eat into these. The PM who needs to scale the business into new sectors will hire a dipshit out of banking who can’t generate ideas for a year because their payback period is subsidised by their ability to build out tools and models, which is just functionally imperative for expanding coverage. You will see less of these types of PMs hiring model monkeys if they don’t need to. Not to say it will disappear.
There's a lot to this - I actually wrote a piece about this recently called "The Skill Erosion Paradox Preserving Analytical Capability in AI-Augmented Teams" but tldr is AI makes it rational to hire fewer juniors today. But the people who become great senior analysts in 2035 are the ones getting reps right now on work that's increasingly being compressed or eliminated. The firms cutting junior headcount the most aggressively might be saving money short term while quietly hollowing out their talent pipeline.
The funds that handle this well will probably be the ones that redesign junior roles rather than just eliminating them. Less time formatting models, more time doing the analytical thinking that actually builds pattern recognition. But that requires being intentional about development in a way that, honestly, most funds aren't set up for.
Just saw that Balyasny built an AI research engine for investing, using ChatGPT 5 to monitor merger arbitrage forecasting, so the field is definitely changing. As others said here judgement is the element that AI can't replace.
ai cant replace the 1000 citadel analysts who detect a tone change in an in person management meeting that indicates sg&a will grow 15bps instead of 12 bps next quarter, underpinnning their highest conviction short for the next 2 weeks
If you really believe AI is going to eventually replace everybody else, what makes you think it'll stop before it gets to the senior analysts and PMs?
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