Anyone see the news out about OpenAI hiring ex investment bankers to help train their models to do analyst grunt work? Curious what u guys think this means for the industry, especially with younger talent looking at these jobs
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I would be very very surprised if they automate a structured finance model because I've tried using chatGPT during my internship and holy fucking shit was it BAAAAAD and I mean that: bad.
Typically it'll be M&A models maybe TMT or Healthcare but maybe a renewables or a challenging sector would be the real metric to base their automation efforts on.
Where was the tech 1 year ago?
Where will be in 1 year?
Where will it be in 3 years?
Where will it be in 5 years?
IMO, a lot of entry level work is very toast, including finance.
Its not going to leave entry level roles as a whole "toast." It will be a tool used for more efficiency. Demand for financial services specifically from humans will remain, and such humans will still "enter" the industry through some degree of an entry role. How it will impact working hours, comp, etc i dont know, but the idea the whole bullpen will be outsourced to ai is restarted
I find it really funny when people say stuff like this because it really just shows how ahistorical their reference point is
gpt 5 can barely spit out a coherent line of code it's going to be years before a viable product replacement rolls around
Keep throwing monkey shit at me Sam Altman
Bro is coping and hasn't heard of mosaic [ dot ] pe. Your AI analyst that you email and it sends back decks within 5 minutes.
I’d be very interested to see if this will cut hours for analysts as that would be nice, but I’d assume that would come with a pay cut and people would be upset over that
No. It just means we are going to be doing more and more complex analysis in a much more compressed time frame to spit out the same number that the MD had in mind the whole time.
I don't think people understand how LLMs work. It will never be good enough for the more esoteric models/companies we deal with.
they are going after banking for marketing purposes bc they are failing to close their funding round. why dont they build a gpt for accounting which is a way bigger industry?
I had a similar thought. Kind of odd to be targeting this market specifically, who exactly is it supposed be helping, the investment banks? Where is the AI that is supposed to make peoples lives easier and more efficient… what does “no more IB analysts” achieve for broader economy?
Im sorry, but I am at the point where this whole topic is just pissing me off. Everyone with the exception of AI CEOs and some newly created AI bros actually believes these LLMs will do any challenging work. They are only inflating revenues with their "AI deals" and talk dreams.
Timeline is difficult to comprehend, but once trust and accuracy is fine-tuned, I think this will especially reek havoc on the boutique and middle market firms in the next 5-10+ years.
Employment: The hierarchy may become leaner "Associate-VP-Director" teams with advanced degrees and/or have industry specialists (e.g. ex-SW engineers for Tech, Ex-lab techs for bio/life sciences) as a way for firms to differentiate. Simultaneously, firms may also have to charge lower fees and retainers, and the profession may become lower paid. I could also see law firms simply spinning up "financial advisory" offerings to clients given that lawyers build a lot of early relationships with companies on IP and other needs.
Deal Activity: Small companies hire banks largely due to not having strong internal corp dev teams to run a process. With this technology, why would a company hire a banker if they can build out a Teaser, CIM, Valuation, and buyer research with proposed terms and waterfall distributions in minutes? We may see still an execution of larger, more sophisticated deals with select firms, but a complete disintegration of middle market banking. Deal timelines will also likely go from months to weeks.
The argument that this will "free up more time" to work on other things is a pleasant facade management teams like to give. If this was true, the invention of the internet would still have mailroom workers at companies "having more free time" to work on other things.
Your first sentence is doing a lot of work for you
I'm making $150 an hour about 20-30 hours a week doing this rn
how do I sign up for this?
good, as Hazlitt would say, the bottom 20% of lost IB jobs will fuel the 20% rise in gardeners tending Altman's lawn
gotta love free markets
Maybe they are training the models
Omg - That’s so gross. Where?
How do I apply for this job 😂
We are sorta fucked. Chat cannot do anything in excel well enough, but if you ask for a bottom-up framework to analyze a company for revenue towers or like the more "thinking" parts of the modeling, it does fairly well.
But who knows, the role of a banker/investor is not just modeling anymore.
I still don’t get how AI will help with the workstreams - yes it will build the financial model, public comps table, precedent transactions with PPT output. But we already have pre-formatted 3 statement models to use and full table with CapIQ formulas to pull the data.
And yet when I was in IB we will literally handspread comps one-by-one to be “bespoke” for their clients’ discussion materials, or go line by line on FDD VDR report to see if there are any adjustment to QoE.
CapIQ already does all this so unless OpenAI can offer full flexibility with zero halluciation and 100% accuracy (or your MD will scream at you), not sure how this will help. Either way BB/EBs have their own proprietary AIs but last time I checked they were pretty bad. Yes, AI will get better with time, but IB is already semi-automated with all the tools we have.
Oh and don’t forget the cost of each tokens running AI - hopefully we can build data centers and energy grid quick enough to cover all the demand in an cost efficient manner
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