The endless nights of PowerPoint formatting and pitch deck number-crunching might finally be coming to an end. As we enter 2025, investment banks across the Street are gearing up for a significant push in AI implementation, and the target is clear: transforming the junior banker experience.
From Exploration to Implementation
While 2024 was largely about testing waters and proof of concepts, 2025 is shaping up to be the year of actual deployment. The big players aren’t just talking anymore – they’re preparing to roll out concrete solutions. Goldman Sachs has a dozen proof of concepts in the pipeline with 1,000 developers dedicated to AI projects. JPMorgan isn’t far behind, exploring 400 use cases with a team of 2,000 AI specialists. Even Nomura has generated 1,000 potential AI applications through internal pitches.
What’s Actually Changing?
Let’s get specific about what’s coming:
The first wave appears focused on the traditional pain points of junior bankers. UBS is already using AI to identify M&A targets for clients, and most banks are working on automating the initial drafts of pitch books and regulatory filings. But perhaps most intriguingly, some banks are pushing the envelope further – UBS has even started using AI for employee reviews.
The Impact on Junior Bankers
Here’s the elephant in the room: what does this mean for junior roles? According to one AI lead at a major bank (who preferred to remain anonymous), we’re looking at potential efficiency gains of 25-40% among junior bankers. But before anyone panics, this isn’t necessarily about job cuts – at least not yet.
The consensus among senior bankers is that AI will transform rather than eliminate junior roles.
The Shifting Skill Set
Perhaps the most interesting development is how this might change what banks look for in their analysts. The traditional focus on economics, mathematics, and finance degrees might need to evolve. Several senior bankers are already talking about prioritizing “softer skills” and even evaluating candidates based on their ability to interact with AI tools.
Looking Ahead
As we move into 2025, the key questions for everyone in the industry are:
- How quickly will these changes actually roll out? While the technology is promising, compliance and confidentiality concerns still need to be addressed.
- What’s the right balance between AI automation and human oversight, especially in client-facing work?
- How will this affect the traditional investment banking career path and training model?
The Bottom Line
The AI revolution in investment banking isn’t just about efficiency – it’s about redefining how junior bankers work and develop. While the technology might eliminate some of the traditional “paying your dues” tasks, it also opens up opportunities for junior bankers to focus on more strategic work earlier in their careers.
For those of us who’ve spent countless nights formatting slides or updating models, this change can’t come soon enough. But it also means we need to start thinking differently about how we develop and train the next generation of bankers in an AI-augmented world.
