An/Aso obsolescence — is it happening now?

The shift you're observing aligns with broader trends discussed in top WSO threads. AI is indeed reshaping the landscape for analysts and associates (An/Aso), particularly in roles that involve repetitive or process-driven tasks. Here's what you need to know:

1. AI's Impact on Analyst/Associate Roles:

   • Many asset management firms are actively integrating AI tools to automate tasks traditionally handled by entry-level roles, such as drafting earnings notes, building models, and even creating presentations.
   • This trend is accelerating, with some firms projecting an 80% reduction in new associate positions by the late 2020s.

2. AI as a Work Enhancer:

   • While AI is replacing some tasks, it's also enhancing productivity by catching errors, streamlining workflows, and enabling higher-value analysis. For example, tools can now generate financial models, summarize key portions of reports, and even identify risk phrases in earnings calls.
   • Analysts and associates who adapt by leveraging these tools effectively can still add value, particularly in areas requiring judgment, creativity, or nuanced understanding.

3. Future-Proofing Your Career:

   • To stay relevant, consider pivoting toward roles or skills that are harder to automate. Operations, niche expertise, or areas like private markets (e.g., early-stage growth equity) may offer more resilience.
   • Building a "personal moat" by becoming indispensable—taking on more responsibility, mastering AI tools, and focusing on higher-impact work—can also safeguard your career.

4. What’s Next?

   • The pace of AI adoption will likely continue to accelerate, but operational inefficiencies and the need for human oversight will slow full automation in the short term.
   • Long-term, roles may evolve rather than disappear entirely, with analysts and associates focusing more on strategic, creative, or interpersonal aspects of the job.

In short, while obsolescence is a concern, those who adapt and position themselves as value creators will find opportunities even in this rapidly changing environment.

Sources: 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