AI's Impact on Banking Jobs: What's Really Happening?

The finance world is buzzing about AI taking over jobs, but the reality is more nuanced. While banks are investing big in AI, it's not the main reason for recent layoffs. The cuts are mostly due to overhiring during the pandemic and economic uncertainty. Experts argue that AI is often used as a convenient excuse for other issues, like softening demand or poor hiring choices. Banks aren't rushing to fire people just yet. They're focusing on boosting productivity with AI, which means they won't need to hire as many new employees. This trend could last for years. For instance, Bank of America's workforce barely changed, and JPMorgan even added 2, 000 employees in the last year. Goldman Sachs, despite layoffs, still has more staff than before.Top MBA graduates are still landing jobs, but the numbers are slipping. At elite schools like Harvard and MIT, more students are graduating without job offers compared to a few years ago. However, not all MBA programs are equal. Schools in New York City have an advantage due to their location and resources. Some jobs are safer than others in this AI-driven world. Entry-level analysts might think they're at risk, but their jobs require critical thinking that AI can't easily replace. Consulting and banking roles are also resilient because they demand precision and adaptability. On the other hand, accounting and marketing jobs are more vulnerable. AI can handle tasks like data entry and analysis, reducing the need for human workers in these areas.