Are we doomed by AI?

How likely is it that entry-level roles are going to be taken over by AI in the next couple years. I’m a recent college grad working to get some experience and would like to work in Asset Management or a Hedge Fund eventually. Would these analyst roles get taken over by AI, say, in the next 3-5 years or so? Would it be worth pursuing despite all the talks of AI taking over these roles? Would love to hear your thoughts.

7 Comments
 

Based on the most helpful WSO content, here's what you need to know:

  1. Machine Learning and Analyst Roles:

    • There is significant debate about the impact of AI on research analyst roles. While machine learning can crunch numbers faster and spot patterns more effectively, the consensus is that it won't completely replace analysts in the near future.
    • Analysts perform a wide variety of tasks that require human judgment, such as diligence calls and synthesizing qualitative information, which are not easily replicated by AI.
  2. Short-Term vs. Long-Term Impact:

    • In the short term (next 3-5 years), AI is expected to assist rather than replace analysts. Tools that generate financial models, highlight changes in risk factors, and summarize key portions of financial reports are already in use and will continue to improve.
    • The role of AI is more about simplifying and automating mundane tasks, allowing analysts to focus on higher-value work.
  3. Entry-Level Roles:

    • There is a concern that entry-level roles, particularly in Asset Management (AM), might be significantly reduced due to AI advancements. Some firms are already working on automating tasks traditionally done by associates.
    • However, the complete elimination of these roles is not expected in the immediate future. The transition will likely be gradual, with a shift towards higher-value tasks for remaining roles.
  4. Technological Competence:

    • Analysts and associates who can adapt to and leverage new AI tools will have an advantage. There is a need for a baseline of technological competence to effectively use these tools.
  5. Career Advice:

    • Despite the advancements in AI, pursuing a career in Asset Management or Hedge Funds can still be worthwhile. The industry will continue to need skilled professionals who can interpret data, make strategic decisions, and provide insights that AI cannot fully replicate.
    • Staying updated with technological trends and continuously improving your skills will be crucial in maintaining relevance in the field.

In summary, while AI will transform certain aspects of analyst roles, it is unlikely to completely replace them in the next few years. Embracing technology and focusing on high-value tasks will be key to thriving in this evolving landscape.

Sources: https://www.wallstreetoasis.com/forum/hedge-fund/machine-learning-taking-over-hf-research-analyst-roles-in-near-future?customgpt=1, Work at top AM -- AI will virtually kill of entry-level roles in AM over the next 5yrs, Work at top AM -- AI will virtually kill of entry-level roles in AM over the next 5yrs, Q&A: AI will automate many roles in the IB/PE world. A live Q&A with Arctic, who are recruiting finance professionals to help manage that change, Q&A: AI will automate many roles in the IB/PE world. A live Q&A with Arctic, who are recruiting finance professionals to help manage that change

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

AI isn't smart enough (and won't be for a while) to take the quantitative and human parts of the job. There are a lot of tasks that are incredibly simple for people and incredibly hard for AI. That being said, I suspect that if you can't utilize and interact with AI, and don't have any programming knowledge, you're going to be phased out by people that are. A serious percentage of people I meet that are getting internships are now CS/Math/Engineering majors instead of Finance, because those skills are in higher demand and are way harder to teach than basic finance skills

 

If you have to ask this question you likely can’t do the research required to be a good fundamental investor.

 

Yes, you are doomed. Now stop asking this stupid question over and over please.

"If you don't have any enemies in life you have never stood up for anything" - Winston Churchill | "It's a testament to the sheer belligerence of the profession that people would rather argue about the 'risk-adjusted returns' of using inferior tooth cleaning methods." - kellycriterion
 

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"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee
 

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