While investment banking is a relationship based business and the impact of chat gpt is somewhat muted, I was curious to hear peoples thoughts on the impact of chat gpt on pe at the junior / mid levels? Presume a good portion of data cuts from data room files, modeling etc can be done by chat gpt?
Will this ultimately reduced the need for junior and mid level people in pe
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No. I use it to make preliminary question lists & write business descriptions for pipeline stuff
where did you learn to do this? looking for resources
A friend sent this to me a few days ago and I think it makes a good point on the impact of AI as a whole on the finance industry. The vertical in finance most susceptible is one that relies most heavily on publicly available data (ex: hedgefunds).
"As a guy who make a career out of just know where/who to call and get data from then index match into a report for senior leadership, this is just jumping on the bandwagon. Many companies don't have a data warehouse. I would say majority of companies don't have proper data infrastructure in place. I have seen multiple companies that are supposed to be at the top of their field, especially in healthcare and adjacent industries, where reporting structure are just a bunch of bandaids put together by analysts. If companies get their shit together and have everything data related work, I and a lot of people should be out of a job since data warehousing concept started in 1980. People are still using Excel as a psuedo database to the point MS gave up and just implement data model in Excel. Data don't even get to be available to internal company personnel outside of the silo that hold it, what's a bot gonna do? Replacing finance team like FP&A or consolidation with ChatGPT is a pipe dream.
Remember data scientist was the sexiest job of 21st centuries? All the rage about advanced analytics. Turn out 90% of us just become BI/data/visualization analyst with a glorified title. The guys who are more into back end become data engineer. Why? Because data infra sucks. This was all stemmed from human and our colliding incentives. Having an AI doesn't suddenly solve this."
Really well put. The shitty data infra points really hit home. Every place I've worked including startups, investment firms, and public companies all still had a huge amount of reliance on excel. Local, state, and even federal government agencies worldwide use it for a ton of processes as well. Excel workarounds and data visualization is truly the backbone of the modern world.
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