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 get where you're coming from—AI's rise is definitely shaking things up across the board, including in investment banking (IB). But here's the thing: while AI will definitely change how we work, it’s unlikely to replace human analysts entirely anytime soon.

For starters, AI is great at handling repetitive tasks. Think things like number crunching, financial modeling, and generating reports—all of which can be automated to save time. This means that, as an IB analyst, you might spend less time on the tedious stuff and more time on the high-value, strategic parts of the job: client interaction, problem-solving, and decision-making. So, in a way, AI will help you do your job better and faster, not completely take it over.

That said, AI can't replace the core of what makes IB so human—relationships, intuition, and judgment. A lot of the real value in IB comes from understanding market nuances, reading between the lines in financial reports, and negotiating deals. No machine can replicate the interpersonal skills needed to build trust with clients, for example. It’s those human touches that set top analysts apart.

As for career prospects, IB is still a solid path. But things are shifting. The real winners in the future will be the ones who combine traditional IB skills with tech savvy. Think understanding how AI works and using it to enhance your analysis. If you can pair financial expertise with an understanding of AI tools, you'll be in a great position.

If you're wondering whether AI will replace us all, the short answer is: no, not entirely. It'll make parts of the job more efficient, but the heart of the work—advising clients, building relationships, and making strategic decisions—will still need a human touch. So, as long as you’re adaptable and open to learning new tech skills, I think there’s a bright future for you in IB.

Hope that vibes with what you were thinking about the future of your career!

Best,
Harrshit

Answer 4

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

Answer 5

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)