How hard would it be for AI to do the job of an Analyst?
I've been reading up a bit on AI lately and it has me thinking about the jobs that it could potentially replace. It seems to me like AI could easily build the models that IB Analysts are responsible for. Is this true?
Nah, each company is different and especially when dealing with private cos, the data isn’t as structured as you’d think. Also, analysts spend most of their time on pitchbook anyway
It isn't possible.
There are a ton of posts on "they took our jobs!!!!"
Impossible imo. Sure AI can churn out basic DCFs, LBOs, etc. but that's already basically taken care of with templates. In reality constructing a DCF, LBO, Acc / (Dil), etc. is like 15% of the job. The rest is spent on presenting results in a logical manner to tell a story that links the results of these analyses and presenting a thesis. For the same reason you wouldn't have an AI generating stories and fiction novels, you can't really have an AI generate things like an investment thesis.
Also, human interaction is important (for both personal confidence in the result and legal liability). If you are the CEO of a $5bn public company, how confident would you feel about the analysis if you asked a banker what assumptions he put into your valuation, and he simply said, "I don't know! AI did it, but I'm sure it's accurate!"
If AI starts taking over IB, then our jobs are going to be the least of the problems.
Did you come here to gloat or did you come here to get a legitimate response? It's like going on a forum for cops (policestationoasis.com lol) and saying "hey guys, what do you think about the defund the police movement, you know, the one that would make many of you lose your jobs?". If you ask on here, people are just going to say no, it's impossible because they a) genuinely believe its impossible or b) know deep down that it's possible and simply don't want to address it.
If you really want to know the answer, get on some sort of forum or sub-forum about AI and explain the role of an IB analyst and how it fits into IB overall, then ask if they think AI could do it. Then you'll get answers that offer real insight and discuss different AI concepts in their answers. Good luck!
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