AI's impact on investment banking jobs from M&A to trading

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Artificial intelligence is set to transform up to 33% of investment banking workflows by 2030, according to a new report from consultancy ThoughtLinks. The analysis by former Bank of America executive Sumeet Chabria examines how four key areas of Wall Street will evolve:

Mergers & Acquisitions

• Bankers' role: Focus on risk assessment, deal strategy, and complex due diligence
• AI's role: 24/7 target identification and risk flagging
• Forecast automation: 30%

Equity Underwriting

• Bankers' role: Real-time bookbuilding, investor negotiations, and deal storytelling
• AI's role: Market simulations and dynamic pricing adjustments
• Forecast automation: 32%

Debt Underwriting

• Bankers' role: Timing evaluation and legal compliance oversight
• AI's role: Document drafting and market monitoring
• Forecast automation: 34%

Sales & Trading

• Bankers' role: Algorithm calibration and high-stakes decision making
• AI's role: Real-time execution recommendations
• Forecast automation: 32%

Image: Courtesy of Sumeet Chabria/ThoughtLinks

Major banks like JPMorgan, Citi, and Goldman Sachs are already implementing AI strategies firmwide. The technology is expected to handle data analysis, document drafting, and market simulations, while human bankers will focus on judgment-intensive tasks like client advising and complex negotiations.

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