AI Threatens Finance Jobs – Is AI the New Wall Street Banks Power Player?

Recently, artificial intelligence (AI) has filled the gaps in massive industries and fields. And now it’s time for AI to hit the finance industry. Suddenly, the headlines started rolling out all across the media platforms that if “Is AI the New Wall Street Banks Power Player.”

The icing on the news is that financial experts like Morgan Stanely and Goldman have indirectly confirmed the current situation. And stated that ‘firms could cut new analyst hiring pay rate by as much as two-thirds.’

Junior Analyst Jobs on the Chopping Block

The surprising part is that AI taking over financial jobs isn’t just at the beginning but is already in motion. Several financial institutions and banking systems are opting for AI tools. However, at New York Times they claimed that the “Junior Wall Street Analysts” have a higher risk of losing their jobs.

Moreover, well-known firms are considering that they should even pull back from looking to hire more analysts. Yet, with time, Wall Street started heavily relying on technology and AI, according to NYT publications this week.

Wall Street Banks to Cut the Two-Third Salaries

So, the new analysts are expected to receive two-thirds of the current salary for the same position. On the other hand, the already on-board team is more likely to have lower salaries in the future mainly because of the AI assistant installed in their working system.

The Chief Strategy Officer at tech depart. Mr. Rabenseifner said; “The easy idea is you just replace juniors with an AI tool.” He didn’t hesitate to mention that human staff is still needed even though the AI is a New Wall Street Banks Power Player.

“Socrates” – AI Threatens Finance Jobs

Socrates is the banking nickname or label for the AI tools they opt for in financial operations and management. The report confirms that this AI software assists big firms in performing multiple tasks. And has even successfully shown exceptional results in the least time possible. So maybe the time isn’t far for Socrates to become the fundamental component of Wall Street Banks.

AI the New Wall Street Banks Power Player – Any Immediate Changes in Hiring

While being asked during the media interaction. Goldman Sachs claimed that the authorities are at the “early stage” of testing and exploring various AI techniques. Moreover, he cleverly added that the firms are “pleased with the AI results so far.”

On the other hand, they stated, “we have no current plans to alter our incoming analyst classes as a result of these efforts.” Moreover, the Deutsche Bank said that for now, it is too early for them to quote any statement regarding “potential job cuts.”

Industry Leaders Foresee Workplace Shifts

Following “Is AI the New Wall Street Banks Power Player.” Most finance executives have mentioned that we might have entered into an era where massive workplace shifts have already happened. Initially, they shared that AI has the huge potential to assist and boost workers’ productivity. Lately, however, they have complained that they tend to spend most of their time on AI.

Statistics – AI the New Wall Street Banks Power Player

• AI has “affected” approximately 300 Million workers
• Whereas, by the end of this decade (2030) there is a high potential that 12 Million Workers will be completely replaced by Artificial Intelligence
• Lastly, AI tends to replace almost 75% of the entire working hours in the monetary sector.

Conclusion- AI the New Wall Street Banks Power Player

AI in the finance sector is an exciting yet complicated situation at the same time. Thousands of analysts are concerned about losing their jobs and the newbies or those aiming to join the banking sector have already lost the opportunities. Obviously, firms enjoy having deeper insights and more efficiency.

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