UK M&A Space reducing headcount due to AI

Having worked at a boutique advisory firm in the UK - am quite shocked. After interviewing at various well known PE funds and advisory houses - most firms have reduced headcount for juniors and are not taking any more on. Heard this with quite a few advisory firms that are not hiring analysts for gruntwork and will only hiring via the Big4 ACA route. Similarly with PE - many funds have reduced associate and junior roles due to AI. Got told by 3 firms they do not want to hire analysts as Claude and some other financial AI tools and deck builders now do 90% of the work. In hindsight not completely suprised as IB/M&A is very repetitive work but I do think this is shortsighted by firms - when the partners retire who is going to win business? Claude opus 4.69 or an analyst who has been on deal runs and knows how to handle clients after spending 10-15 years grinding? 

My experience and view is entirely anecdotal but still was quite shocked to see. Would be interested in hearing what people think and what the optimal route is into PE for new grads in the UK. I think EBs / BBs still remain fine and are hiring but the mid-market seems to be changing rapidly. Even adjacent roles like TTS / FDD roles all use AI and are reducing headcount (outside of 8 Advisory and Big4 and similar sized firms from what I can see but could be wrong). 

What's the optimal route into the industry now? (This is very UK Specific but can imagine in the states at some point this will happen - am a bit suprised at how the MM has responded to AI - always thought it was a bit slow moving to new trends)