AI in IB & Management Consulting

Based on the most helpful WSO content:

Investment Banking:

• Automation Impact: AI and automation are expected to significantly reduce the number of entry-level roles. For instance, the work of multiple analysts can be done by fewer individuals with the help of AI, potentially leading to a 20-50% reduction in workforce size.
• Relationship-Driven Roles: While automation will streamline many tasks, the relationship-driven aspects of investment banking, such as networking and client management, are less likely to be replaced by AI.

Management Consulting:

• AI and Automation: Similar to investment banking, AI is expected to take over many low-skilled jobs. This includes tasks like data analysis and report generation, which are already being automated.
• Broader Impact: The consulting industry might face a broader impact as AI systems become more capable of performing complex tasks, potentially leading to significant changes in job availability.

Conclusion:

• Investment Banking: Likely to see a reduction in entry-level roles due to automation but will retain roles that require human relationships and networking.
• Management Consulting: Could experience a broader impact with AI taking over a wider range of tasks, potentially leading to significant changes in job availability.

Given these points, management consulting might see a broader and potentially more significant reduction in job opportunities due to AI and other factors compared to investment banking.

Sources: Will robots replace your consulting or financial career?, Google partners with Goldman Sachs in automating Investment Banking, Work at top AM -- AI will virtually kill of entry-level roles in AM over the next 5yrs, Thoughts on AI and the future of the job market?, Future of Banking