Impact of Artificial Intelligence on High Finance roles
Drafting a paper for a class on the impact artificial intelligence has had on jobs within the industry. Would love to hear any insight from anyone who has seen AI make an impact on their role. Opinions on the future also welcome.
Based on the most helpful WSO content, here are some insights on the impact of Artificial Intelligence (AI) on high finance roles:
Current Impact of AI on High Finance Roles
Automation of Repetitive Tasks:
Enhanced Deal Origination and Due Diligence:
Productivity Boost:
Future Implications of AI on High Finance Roles
Reduction in Entry-Level Roles:
Shift in Skill Requirements:
Ethical and Moral Dilemmas:
Competitive Advantage:
Value Creation in Portfolio Companies:
Opinions on the Future
Economic Disparities:
Need for Adaptation:
For more detailed discussions and insights, you can refer to the following threads on Wall Street Oasis: - https://www.wallstreetoasis.com/forum/private-equity/qa-ai-will-automat…</a">Q&A: AI will automate many roles in the IB/PE world - https://www.wallstreetoasis.com/forum/investment-banking/thoughts-on-ai…</a">Thoughts on AI and the future of the job market?
These resources provide a comprehensive view of how AI is reshaping the landscape of high finance roles and what the future might hold.
Sources: Thoughts on AI and the future of the job market?, 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, Will robots replace your consulting or financial career?, 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, Work at top AM -- AI will virtually kill of entry-level roles in AM over the next 5yrs
Biggest impact I have seen isn't so much as my own role, it is more to do with those clients that I consult for.
I mainly deal with fintechs, banks and payment firms. Lots of these companies want to or have started to implement AI into their business strategy from all aspects.
One of the more recent projects I worked on, client wanted to understand how they could implement AI in their back office. This wasn't to reduce headcount or make cost savings, just how it is that AI could even start to help them operationally.
I think apart from AI's inevitable replacing of people in the workplace, it should also be able to help those with enough expertise to really hone in on what it is that they want to achieve within a company (from a role perspective, not career progression perspective).
As much as it is a risk to people, it is also a huge asset. I personally don't rely on AI to do my job but I'd be lying if I said I didn't utilise it every now and then, and I genuinely think it helps me with efficiency and increased output.
I'd say my biggest pointer is not to depend on it and try to never depend on it, otherwise, you could find yourself in a deer in the headlights situation - I was part of something like this, except I was "driving the car" and could tell that the person on the other end was just regurgitating information they found using an LLM.
Personally I think AI might help around the edges, but isn't going to be transformative and most of the hype around it is being driven by Silicon Valley/tech firms desperate to justify giant valuations and convince investors that the kind of growth they've demonstrated over the last ~15 years is possible in perpetuity... which it isn't.
AI doesn't really do anything. It can do pattern recognition (which may be extremely useful in some fields like medicine) but from a business perspective, it really is just making guesses about what the questioner wants. Which means you'll need to put in nearly as much effort in fact/error checking the output as you would to create the work in the first place.
And more importantly, we may not be far from a massive wave of lawsuits about the obvious theft of IP that went in to training AI.
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