AI Taking Over Banking
Is anyone worried about the future of finance/banking & the job market with the rapid acceleration of AI tools? As an incoming first-year analyst, I'm worried that these positions will become obsolete in the near future if these tools continue to develop at such an accelerated pace.
Listening to Sam Altman talk about his vision of the future sounds like a horror story to me. Does anyone else feel the same or have any thoughts?
No. You'll be fine.
And that is coming from DoddFrank, arguably the closest thing to killing banking.
Let’s be honest - AI might end us all, but there will be zero impact on the experience of incoming analysts.
Goldman went from 600 cash equity traders to 2 in just a few years. They all said "yea sure, technology is eating the world... but we're special" quoting Goldman's head of securities.
Wall St has a hubris about the work it does and people are generally blindsided by tectonic shifts in technology. I would be worried...
I mean if banking jobs are at risk then all office jobs are at risk. Not sure how being worried will help with anything.
I know someone that works at a BB in the IT department and they said lower level IT jobs might be getting cut by AI/automation. Think like password resets and stuff like that, but it's only the beginning...
Chat GPT def taking acuity's job
Dude don't worry about it. I'm sure they said the same shit back in the 80s when monochrome monitors were coming out...40 years later and things are not fundamentally different. Is technology accelerating at an exponential rate? Yeah. Does that mean machines will take over as workers all become obsolete? Nah. Government will obviously step in, exactly what that will look like who knows. Not to mention we're still a longg ways off from the algorithms/tech being advanced enough to enact this dooms day scenario.
Besides, power stays where the money is. Anyone on this forum is presumably well educated and on an elite career path. You'll be fine.
I feel the same except the govt part lol.
Banking at high level is sales work. Sales is pretty much immune from AI.
But analysts and associates … they aren't safe. My prediction is that ibanking will cut headcount of all non-deal-sourcing employees ( analyst + associates + some VPs ). Say, for every MD, there will be two VPs + two associates, no analysts. And the associates won't do grunt work anymore, they're instead nurtured as seed candidate for future MDs. Hiring will become a bloodbath, millions of people competing for a few spots. Since all grunt work is done by GPT, banking will become an extremely attractive job and will attract many applicants. Salary and bonus will reduce for VP and below, because MDs can keep all bonus to themselves and occasionally spare some pennies to GPT maintenance specialists sent from openAI
I don't know what you're doing fear mongering under every AI related post...What will likely happen is analysts will use it to make their job easier and focus on other higher priority tasks that are more "fun". We were chatting about it during lunch one Friday, and my MD talked about how when he first began his career, he used to run down to this library the firm had to get financial statement data to hard-code, and when FactSet was created, his entire associate class was scared shit-less that they would no longer have jobs. 25 years later, associates are no longer the bottom rung of the ladder, there are now analysts, and class sizes have never been larger. What may happen is the India team get's layed off, but not the bankers. The job of an analyst will only get sweeter.
Yeah but they just won't need as many analysts.
Imao are you seriously comparing GPT with FactSet ?I'd say no need to argue, just wait for a few years and see
But no need to be scared, the current batch of analysts and asso are safe because by the time GPT matures and fully integrated to banks ( around 2030 ), they'll already rise up to senior VPs or even MDs making big bucks. So no need to be salty, you're safe.
The ones that need to be worried are high school students who want to break into high finance, because by the time they graduate college, they'll have to compete against advanced GPT for entry level positions
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