Big financial companies like Goldman Sachs and Morgan Stanley are trying out AI tools that could mean fewer human employees and more bots handling IT work. They’re thinking about swapping out entry-level financial analyst jobs with artificial intelligence (AI), possibly getting rid of up to two-thirds of these positions. This change could completely change how these companies hire people and how they handle the technology that employees use.
Goldman Sachs and Morgan Stanley are testing AI tools that could take over the tasks of junior analysts, like putting together reports and crunching numbers. These AI tools can do these tasks in seconds, which usually take humans much longer, according to a report from the New York Times.
Big banks are testing AI tools under names like Socrates, which might make it unnecessary to hire lots of college graduates in the future, the report says.
Goldman Sachs predicts that around 300 million jobs could be affected by AI, and it looks like financial companies are heading in that direction.
These companies already use various automation technologies, from basic tools to more advanced ones using AI, according to a report by SMA Technologies.
One reason why AI might replace entry-level financial jobs is because it can automate a big part of what these employees do. Also, many of these workers get burnt out from the long hours and repetitive tasks, making it less attractive for new graduates, despite the good pay.
Representatives from big financial firms like Goldman Sachs, JP Morgan Chase, and Morgan Stanley haven’t commented yet on their plans for AI or how it might change their hiring.
AI is already changing how we work, but it’s not clear yet how much it will affect human jobs. Most companies are still testing AI to help employees, but that might change soon, experts say.
The financial industry could be one of the first to use AI on a large scale, and employees there might see the effects first.
Financial services, law, and market research are expected to be the first industries affected by AI, with companies like Morgan Stanley and Bank of America leading the way, according to a report by SHRM and Burning Glass Institute.
For CIOs in these fields, this might mean fewer employees to manage, but they’ll have new challenges with implementing and managing AI tools.
In the short term, AI will help with automating financial tasks, managing risks, and improving financial operations, according to a report by Deloitte.
But there’s much more to come in terms of how AI will change organizations, the report says. “With its ability to process vast amounts of data and quickly produce novel content, generative AI holds a promise for progressive disruptions we cannot yet anticipate.”
Source: CIO
