Will AI replace investment banking analysts?

Why AI struggles to replace this job

• Investment banking requires understanding the 'story' and narrative behind a deal, not just the raw numbers.
• Analyst work often involves late-night, high-pressure adjustments based on the volatile whims of a client.
• Strategic advisory requires a level of intuition about market sentiment that algorithms cannot perfectly replicate.
• Junior analysts often perform 'service' tasks for senior partners that involve human-to-human coordination.

Tasks AI could automate

• Building complex financial models and discounted cash flow spreadsheets based on historical data.
• Creating the initial drafts of pitch books and industry research presentations.
• Spreading financial statements from various companies into a standardized comparative format.
• Conducting preliminary due diligence by scanning through thousands of pages in virtual data rooms.

The 10-year outlook

The role will become less about 'grunt work' and more about managing AI tools to produce higher volumes of work. While compensation will remain high, competition for these fewer, more tech-heavy roles will intensify significantly.

Common questions