Banks have found a new junior analyst who’s always on time, doesn’t take vacation, and will never complain about a lack of work-life balance.
Driving the news: Amazon-backed startup Anthropic is launching a suite of new tools designed to “help” financial analysts with market research, financial modelling, and investment decisions.
- One exec touts that the tool provides “the precision of a junior analyst,” which is not the most reassuring thing to hear if you’re an actual junior analyst.
Why it matters: Finance is arguably the most vulnerable industry to AI disruption. In a report last year, Citigroup said that AI will likely displace more jobs in the banking industry than any other sector (we respect the self-awareness).
- A Statistics Canada analysis determined that every role in Canadian finance is exposed to possible AI disruption, though the agency cautioned that disruption doesn’t necessarily mean at risk of being replaced.
Big picture: Entry-level roles like junior analysts have long been the go-to path for young folks to cut their teeth in the industry. Now, big banks like Goldman Sachs and Morgan Stanley are reportedly considering cutting their analyst classes by up to two-thirds.
Zoom out: Finance may be ground zero for this junior job exodus, but fields like law, tech, and consulting are in similar boats. Anthropic’s own CEO said in May that AI could wipe out nearly half of all entry-level white-collar jobs in the next one to five years.—LA