|These potential changes come when big banks are having a tough go of it while their biggest competitors are thriving.
Private credit players have filled the void left by banks pulling back on offering risky loans, making them an attractive career path. And private equity has gotten more aggressive in courting junior bankers, starting recruitment when they are only a few weeks on the job.
If AI enables junior bankers to do more interesting work than managing Excel sheets or updating Powerpoints, that could go a long way to reinvigorating the role. Instead of being viewed as a stepping stone, analysts might be interested in staying at a bank for the long run.
But if AI leads banks to reduce the size of their analyst classes, it could motivate competitors to tap into the young talent pool banks have long dominated.
Buy-side firms have largely held off on going after college graduates, instead pointing them toward banks’ analyst programs. But if those diminish in size, it could lead to a feeding frenzy for talent, upending the traditional Wall Street pipeline.
Regardless of what direction things go, what’s clear is the type of work AI excels at falls directly in junior bankers’ wheelhouse.
As a result, the two seem destined for a collision course, for better or worse.