Artificial intelligence has Wall Street employees looking over their shoulders.
The world’s most talked-about technology is set to take over banking jobs traditionally handled by human employees, according to a report by Bloomberg Intelligence. Executives at top financial firms, like Citigroup, JPMorgan Chase and Goldman Sachs, expect to let go of about 3% of their global workforce over the next five years, leading to the loss of 200,000 jobs. About a quarter of the respondents surveyed by Bloomberg said the layoffs could end up accounting for some 10% of total staff. It’s a shift that could reshape banking operations and significantly increase revenues for financial services firms.
“The AI revolution in wealth management isn’t just coming — it’s already here,” said Will Trout, Datos Insights’ director of securities and investments. “The traditional army of junior advisors and support staff who handle routine portfolio management and client servicing could be decimated within five years.”
That AIn’t Good
AI can now create sophisticated investment recommendations and risk analyses that are the envy of even the best human advisors. But the AI revolution is likely to take on the lowest-hanging fruit. That means handling repetitive tasks in back- and mid-office departments like trade processing, compliance monitoring, and basic customer services.
“The automation of routine, repetitive tasks is inevitable,” said Ritik Malhotra, CEO at wealth manager Savvy Wealth. Still, experts don’t agree on the impact the tech will ultimately have on the relationship-based industry. “While a significant portion of banking jobs may be automated, wealth management thrives on human connection — which AI cannot replicate,” he said.
Sure, employees might find it harder to land work, but the companies that used to employ them are expected to ride the AI revolution all the way to the bank. The Bloomberg research found:
- The AI transformation could add as much as $180 billion to firms’ bottom lines worldwide. Profits are expected to surge 12% to 17% as AI increases efficiency.
- Eight in 10 respondents said generative AI could bump revenues up at least 5% in the next three to five years, according to the data.
*Do You Even AI? So, how can employees stop the technology from eating their lunch? Advisors that equip themselves with the latest AI tools can provide more targeted advice based on real-time data, and that could help lead clients to better financial outcomes, Malhotra said. While some entry-level roles are seeing significant change, the technology will eventually prove to be “additive” to the industry as advisors focus on forging better relationships with clients.
From Trout’s perspective, the future may belong to a new breed of wealth managers that combine relationship-building skill sets with the strategic thinking of AI. Sure machines can math anyone out of a job, but can they help navigate more complex financial situations like caring for loved ones or estate planning? “The question isn’t whether AI will transform wealth management, but whether advisors are prepared to evolve,” he said.
Meet
Ritik Malhotra
Ritik is Founder & CEO at Savvy Wealth. When trying to find a financial advisor that offered a tech-forward, modern experience after selling two startups in his 20s, Ritik was compelled to found Savvy when he was unable to find what he was looking for. Since then, Ritik has built an AI-driven technology platform and $700M+ AUM firm that not only simplifies advisors' day to day, but also reduces friction in client engagement.
AI’s Coming for Wall Street Jobs
Artificial intelligence has Wall Street employees looking over their shoulders.
The world’s most talked-about technology is set to take over banking jobs traditionally handled by human employees, according to a report by Bloomberg Intelligence. Executives at top financial firms, like Citigroup, JPMorgan Chase and Goldman Sachs, expect to let go of about 3% of their global workforce over the next five years, leading to the loss of 200,000 jobs. About a quarter of the respondents surveyed by Bloomberg said the layoffs could end up accounting for some 10% of total staff. It’s a shift that could reshape banking operations and significantly increase revenues for financial services firms.
“The AI revolution in wealth management isn’t just coming — it’s already here,” said Will Trout, Datos Insights’ director of securities and investments. “The traditional army of junior advisors and support staff who handle routine portfolio management and client servicing could be decimated within five years.”
That AIn’t Good
AI can now create sophisticated investment recommendations and risk analyses that are the envy of even the best human advisors. But the AI revolution is likely to take on the lowest-hanging fruit. That means handling repetitive tasks in back- and mid-office departments like trade processing, compliance monitoring, and basic customer services.
“The automation of routine, repetitive tasks is inevitable,” said Ritik Malhotra, CEO at wealth manager Savvy Wealth. Still, experts don’t agree on the impact the tech will ultimately have on the relationship-based industry. “While a significant portion of banking jobs may be automated, wealth management thrives on human connection — which AI cannot replicate,” he said.
Sure, employees might find it harder to land work, but the companies that used to employ them are expected to ride the AI revolution all the way to the bank. The Bloomberg research found:
- The AI transformation could add as much as $180 billion to firms’ bottom lines worldwide. Profits are expected to surge 12% to 17% as AI increases efficiency.
- Eight in 10 respondents said generative AI could bump revenues up at least 5% in the next three to five years, according to the data.
*Do You Even AI? So, how can employees stop the technology from eating their lunch? Advisors that equip themselves with the latest AI tools can provide more targeted advice based on real-time data, and that could help lead clients to better financial outcomes, Malhotra said. While some entry-level roles are seeing significant change, the technology will eventually prove to be “additive” to the industry as advisors focus on forging better relationships with clients.
From Trout’s perspective, the future may belong to a new breed of wealth managers that combine relationship-building skill sets with the strategic thinking of AI. Sure machines can math anyone out of a job, but can they help navigate more complex financial situations like caring for loved ones or estate planning? “The question isn’t whether AI will transform wealth management, but whether advisors are prepared to evolve,” he said.
Meet
Ritik Malhotra
Ritik is Founder & CEO at Savvy Wealth. When trying to find a financial advisor that offered a tech-forward, modern experience after selling two startups in his 20s, Ritik was compelled to found Savvy when he was unable to find what he was looking for. Since then, Ritik has built an AI-driven technology platform and $700M+ AUM firm that not only simplifies advisors' day to day, but also reduces friction in client engagement.
