Big firms are reportedly mulling whether to pull back on hiring new analysts as Wall Street leans more heavily on AI, several people familiar with the matter at Goldman Sachs, Morgan Stanley, and other banks told the publication this week.
Incoming classes of junior investment-banking analysts could up being cut as much as two-thirds, some of the people suggested, while those brought on board could fetch lower salaries, on account of their work being assisted by artificial intelligence.
"The easy idea is you just replace juniors with an AI tool," Christoph Rabenseifner, the chief strategy officer for technology, data, and innovation at Deutsche Bank, told the Times, though he noted it would still be necessary to keep human staff.
A Goldman Sachs representative told Business Insider the bank was still in the "early stages" of exploring AI technology, adding that it was "pleased" with the results it had seen so far.
The consulting firm Accenture has an even more extreme outlook for industry disruption, forecasting that AI could end up replacing or supplementing nearly 75% of all working hours in the banking sector.
"AI will enable us to do tasks that take 10 hours in 10 seconds," JPMorgan's head of investment banking Jay Horine told the Times, speaking of Wall Street analysts.
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