Will AI replace IB analysts?

Question

Would be interested in the career prospects of a career in IB? Do you think AI will replace us all?

Answer 1

Great question because I hear this question all the time from candidates preparing for IB roles. The short answer: AI will change the analyst role, but it won’t replace it – at least not anytime soon.

Here’s why:

1. Automation will handle the boring stuff: AI can take care of repetitive tasks like financial modeling, PowerPoint slides, and data analysis. That means analysts will spend less time on grunt work and more time on actual problem-solving.

2. Soft skills and judgment still matter: Investment banking isn’t just about crunching numbers, it’s about telling a story, thinking strategically, and managing relationships. Clients won‘t trust AI to negotiate deals or build rapport, and that’s where human analysts still shine.

3. The job will evolve, not disappear: Future analysts will need to be more tech-savvy (think Python, data analytics) to work effectively with AI-driven tools. Banks are looking for people who can blend traditional IB skills with modern tech know-how.

4. You need experience to move up: The analyst role is a stepping stone to higher positions. Even if AI takes over some tasks, firms still need young talent to gain experience and grow into associates, VPs, and MDs who lead deals.

So AI will make analysts more efficient, but it won’t replace the need for human judgment, creativity, and relationship-building. If you’re aiming for IB, get comfortable with AI tools, but don’t forget that financial skills and people skills still matter.

Answer 2

I agree with Simon. AI will change the work in IB, but not replace it.

After all, each case is very unique and AI (at least as it works right now) can only develop the "on average most likely" solution to a problem. This will give you average results, but not tailored solutions that are needed to become successful in this field. The job pays so well, because it requires the ability to think complex situations completely through and it will be hard for AI to do that on the same level we as humans currently do.

Moreover, AI will not be able to replace the relationships between bankers and clients that are just as important as crunching the numbers in this job.

Short answer: Career prospects in IB are still very good and AI will not replace us all. 😉

Answer 3

I think it could be possible, but will take quite some time, so career prospects in IB are still pretty good.

Answer 4

Having worked in both consulting and finance, I’d say the main difference is the focus. In consulting, it’s about big... (read entire answer)

Having worked in both consulting and finance, I’d say the main difference is the focus. In consulting, it’s about big-picture problem-solving, like helping a client expand into... (read entire answer)