In a cautionary letter to shareholders last year, JPMorgan CEO Jamie Dimon warned that artificial intelligence (AI) “may reduce certain job categories or roles,” drawing parallels to seismic technological shifts throughout history, including the printing press and the internet. This sentiment echoed through the financial sector as firms like JPMorgan, Goldman Sachs, and Morgan Stanley executed multiple rounds of layoffs in 2025. However, experts caution against viewing AI as the primary driver of job losses, describing claims of an AI-induced takeover in finance as largely “smoke and mirrors,” at least for the time being.
Concerns have escalated as banks trim their workforces while investing billions in AI capabilities. Institutions have already integrated advanced software into their operations, with AI tools like “Socrates” executing junior-level analyst tasks in mere seconds. Still, a report from Citigroup highlighted that 54% of financial jobs have a high potential for automation—more than any other sector. Despite this, experts contend that AI-related layoffs have been minimal, attributing this year’s workforce reductions to pandemic-era overhiring and ongoing economic uncertainty.
“If there’s a large company that might say, ‘We’re not planning to hire as much because of AI,’ or maybe ‘We’re letting people go because of AI,’ I think there’s a little bit of smoke and mirrors there,” Robert Seamans, director of New York University Stern’s Center for the Future of Management, told Fortune. He emphasized that AI often serves as a scapegoat, obscuring the real issues like declining consumer demand and poor HR strategies that led to overstaffing post-COVID. “There’s a lot less political risk than blaming the President’s tariffs,” he added.
While AI is not yet poised to replace bankers and consultants, experts warn that marketers and accountants may find themselves in precarious positions. Nonetheless, elite business degrees remain valuable; most top MBA graduates are still securing job offers shortly after graduation. However, signs point to a tightening job market, with banking headcount growth expected to stagnate for years as AI drives significant productivity increases.
Despite the headlines surrounding layoffs on Wall Street, overall headcounts in the banking and finance sectors have remained steady. “The general headcount trend in the banking industry over the last decade is stable to slightly declining,” noted Pim Hilbers, a managing director at BCG. “I don’t see that changing anytime soon.” For instance, Bank of America reported only four fewer employees at the end of Q3 2023 compared to 2024, while JPMorgan added 2,000 employees, largely in corporate operations. Goldman Sachs, despite several layoffs, employed 48,300 staffers in September—approximately 1,800 more than the previous year.
Experts believe banks are not yet ready to significantly reduce their workforce, opting instead to rely on AI efficiencies to delay hiring new staff. This cautious approach may persist for years. “Many of the banks I talked to will say, ‘Look, I want to get the productivity so that I don’t have to hire the next 100 people to put on another billion dollars of loans,’” said Mike Abbott, industry group lead for Accenture’s banking and capital markets. “That’s probably what the majority of thinking is: I just won’t have to hire for 24 months because I can get the productivity.”
Amid these trends, MBA graduates are feeling the impact of a shifting hiring landscape. Though around 92% of Columbia Business School’s Class of 2025 received job offers, and 86% of NYU Stern graduates found employment, these statistics should not be viewed as reflective of all MBA programs. Professors from elite institutions note that their resources and location in financial hubs contribute to these high numbers; for instance, Python programming is considered essential at Columbia. However, job placement rates at prestigious MBA programs have declined since 2021, with Harvard’s “no job offer” rate increasing from 4% to 15% over three years.
As AI continues to take over repetitive tasks—such as creating presentations and synthesizing data—concerns grow about the fate of junior-level analysts. Nevertheless, not all financial jobs are equally susceptible to automation. Experts assert that consulting and banking roles are resistant to AI disruption due to the critical thinking required and the high stakes involved in financial transactions. “Banking consulting is actually not doing too bad,” said Daniel Keum, an associate professor at Columbia. He pointed out that even minor errors cannot be tolerated in compliance-related tasks, making it challenging to fully automate these roles.
Simultaneously, there is an expectation of a surge in tech-related hiring within the banking industry. According to Accenture data, approximately 76% of banks anticipate increasing their technology workforce due to advances in AI. However, this shift may adversely affect employees in vulnerable roles, particularly in accounting and marketing. “For accounting, AI can now ensure that numbers are correct based on physical receipts inputted, leading to fewer job opportunities,” Keum explained. “So only the extremely senior people survive.”
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