Generative generation — Is AI coming for your finance job?
- William Hoffman
- +Shubham Saharan
The days of junior analysts cutting their teeth in the world of finance through data entry or late nights creating slide decks may be coming to an end — if firms embrace generative AI technology like ChatGPT.
The technology is still very much in its infancy, and at this point is perhaps better at lying convincingly than it is at giving sound financial advice. But market participants who have viewed private demos for uses in finance are all highly impressed and think the technology will play a big role in the industry if it continues to improve.
“Very few things completely blow my mind, and AI is one of those things,” said Pete Stavros, co-head of Americas private equity at KKR, during a panel discussion at the Milken Conference in LA last month. “I would not underestimate what could happen in the next five years.”
We spoke to nearly a dozen bankers and investors about the implications of this new tech, which many felt could reduce the number of analysts in the industry and dramatically alter the landscape for those that remain. As AI speeds up some of the menial tasks that junior finance professionals have to deal with, what could the industry gain — and what could it lose?