Is AI Quietly Replacing Entry-Level Analysts in Investment Banking?
Over the last 12 months, it feels like firms are becoming much leaner with junior hiring while simultaneously pushing AI tools internally for research, pitchbooks, modeling support, and workflow automation.
At the same time, deal activity and M&A pipelines seem to be recovering heading into 2026, but analyst classes at several banks still appear smaller than pre-2023 levels.
For people currently in IB, PE, HF, or Corp Dev:
- Are analysts actually working fewer hours because of AI tools?
- Or are banks simply expecting the same hours with smaller teams?
- Do you think traditional “grunt work” gets automated within the next 3–5 years?
- Will technical skills like VBA, Python, and AI workflow management become mandatory for junior finance roles?
- How are elite boutiques vs bulge brackets approaching this?
Curious whether this is a temporary hiring cycle issue or the beginning of a structural shift in high finance recruiting.
You’re not wrong, there is definitely something changing, but it’s not as simple as “AI = less work.”
From what I’m seeing (and hearing from people in IB/PE), hours haven’t really gone down. AI helps with things like drafting slides, pulling data, or speeding up some analysis, but teams are also leaner than they used to be, so any time saved just turns into more work or higher expectations.
That’s probably the biggest shift right now: smaller analyst classes, but the same (or increasing) deal flow -> you’re expected to ramp up faster and take on more responsibility earlier.
On the “grunt work” side, yes, some of it is getting automated (slides, first-pass comps, basic research), but the core of the job, figuring out what actually matters, tailoring things to clients, handling pressure, doesn’t go away. It just means the baseline is higher now you’re expected to deliver better output, faster.
Skill-wise, Excel is still the foundation, but you can clearly see where things are going. You don’t need to be a programmer, but people who understand Python, data, or even just how to use AI tools properly have an edge. It’s less about coding itself and more about working smarter.
Also, this isn’t just a banking thing. A lot of consulting firms (like Accenture) are currently rolling out AI workflow and automation projects at scale, so the whole “fewer people, more tech-enabled output” trend is broader across industries.
The time I save from pulling data and initial research just gets eaten up with catching mistakes on AI edited models. Net effect so far has been higher expectations with no increase in free time. Many times I find myself doing it the normal way; e.g. from scratch or editing templates.
I have seen my accuracy go up though, when using using Claude to check my cims and models for specific inconsistencies or mistakes.
"Claude autistically rain man style analyze my slides and spot any font, color, logo, or data inconsistencies. Make no mistakes."
My bank cut our summer analyst class by 30% despite record levels of activity. Hours are still very high, we just work on more things at the same time
Did your bank cut this year‘s intern class or the 27‘ class?
What’s happening isn’t just about AI replacing juniors. My bank cut our summer analyst class by around 30 percent even though activity is at record highs. The workload didn’t shrink at all. We’re just stretched across more projects at the same time.
To me this looks much more like a cost‑saving cycle than a technology shift. It’s the same pattern we’ve seen in tech and software recently. Companies report strong numbers but still reduce headcount to show margin discipline. AI becomes the convenient explanation, but the real motivation is cutting costs and improving optics.
Banks are basically following the same approach. Fewer analysts, the same amount of work, more context switching and management gets to claim increased efficiency. The tasks don’t disappear. They just get redistributed to whoever is still there.
So yes, AI plays a role in the narrative, but the bigger driver is cost pressure and the desire to look lean rather than actual automation replacing analyst work.
which bank is this
It’s not AI. It’s uncertainty. We are on fire and on track to have a record year, but it feels a bit illusory and could go away any time and when it does it will be very ugly. Just doesn’t feel sustainable. I am adding headcount to my group meet the flow but doing so very nervously, Mu C-suite agrees with this view.
Also in an environment (which I think is the prevailing sentiment) where deal flow is high but uncertainty is also high I would spend headcount dollars on experienced hires over unproven grads.
I’d separate “AI replacing analysts” from “AI giving banks an excuse to hire fewer analysts.” The second one is already happening faster than the first. The analyst job is not disappearing tomorrow. A lot of the work still requires judgment, context, client nuance, checking weird assumptions, and knowing when the model output is quietly insane.
The real shift is probably not “analysts work less.” It is “same analyst hours, smaller classes, faster expected ramp.” So I’d frame the 3-5 year risk as compression, not extinction.
Believe me if I had visibility on the market past three months I’d increase analyst headcount by 30%
Hopping on the train here and wanted to ask if it's worth learning stuff like Python, SQL, VBA etc. (recruiting for SA)
Additionally, are there any AI tools in specific to learn and/or worth listing on your resume?
Thanks!
Alright thank you!
And is the Python stuff still useful or am I being dense haha
half of this AI-written thread are either AI bots replying to each other or just people who can't write a single post without running it through chat.
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