With the U.S. economy on the verge of a major shift, as Donald Trump prepares to return to the White House, many questions abound regarding the job market.
Economic uncertainty inevitably rises whenever a new administration takes over in preparation for dramatic policy changes.
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This type of economic climate often leads to questions about the job market, specifically which industries will likely be most impacted.
Last week brought new data suggesting big changes are coming for one industry. A new report suggests the financial sector could be on the verge of experiencing a significant shift that includes eliminating many jobs in the coming years as companies increase reliance on artificial intelligence (AI) technology.
These projections have significant implications for the future of work, particularly as AI continues to revolutionize other industries. However, according to experts who hire finance professionals, the reports may not be entirely correct.
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Experts weigh in on the future of work on Wall Street
On January 9, Bloomberg reported that its research-intelligence arm had conducted an extensive analysis on how the rise of AI may impact financial services jobs in the coming years.
After surveying many banking and technology professionals, the authors concluded that thousands of Wall Street jobs could be eliminated in the coming years as AI becomes increasingly prevalent in the workplace.
Related: Big tech leader slams President Biden for new AI policy proposals
If these projections are correct, Wall Street could shed as many as 200,000 jobs in the next 3-5 years. Tomasz Noetzel, the senior analyst at Bloomberg responsible for the report, notes that of the many jobs in the financial services industry, positions in areas such as back and middle office and operations are the most likely to be impacted by AI.
While Noetzel believes that “any jobs involving routine, repetitive tasks are at risk,” he adds that AI isn’t likely to eradicate them completely. Rather, he sees this fast-growing technology ultimately leading to a workforce transformation for the entire industry.
This change is largely seen as positive from a financial employer’s perspective, and it could benefit investors as well. Of the surveyed professionals, eight out of 10 respondents indicate that they believe increasing use of generative AI in the workplace will boost both productivity and revenue by at least 5% during the specified 3-5 year period.
One company that sees AI as enhancing its work, not replacing workers, is commercial real estate investment firm JLL. Ram Srinivasan, the firm’s Americas Future of Work & AI Transformation Leader, spoke to TheStreet about his predictions for AI and the future of work, describing the 200,000 projection as accurate but also oversimplified.
“What we’re really witnessing is a massive job transformation rather than pure elimination” he states. “We will witness an “AI Multiplier Effect,” where automation creates more opportunities than it displaces.”
To further illustrate this, Srinivasan cites data from the 2025 World Economic Forum Future Jobs Report, which forecasts 78 million net new jobs by 2030. “While 92 million jobs may transform, 170M new opportunities will emerge,” he predicts.
As with many aspects of the business world, the key to success may lie in finding a balance between AI technologies and human expertise. Aaron Bennett, CEO of Bennett Financials, notes that his financial advisory firm has benefited from implementing AI in areas such as tax planning and bookkeeping.
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In his words:
“In my experience, the most successful firms are the ones that strike a balance between automation and human expertise. While AI excels at handling large volumes of data and performing calculations with incredible speed, it lacks the intuition and emotional intelligence required for complex decision-making.”
Advice for future finance job seekers
While experts seem to feel that AI will ultimately serve to enhance rather than eliminate most Wall Street jobs, they also feel that the industry is changing. This raises the question of how new and future finance job seekers should approach the market as it continues to evolve.
Based on the projections of AI enhancing financial jobs, it seems likely that finance professionals with an understanding of these new technologies will have an edge over their competitors.
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Srinivasan also addressed this, advising young professionals to “embrace this transformation, develop hybrid skills, and position yourself at the intersection of human insight and technological advancement.”
Alexander Wah, Founder and Chief Investment Officer of Prince Capital, notes that from his perspective, one of the most important qualities for new hires is the ability to adapt and learn new things. While that may include AI systems and models, it is not limited to them.
“The power will be with the people who can learn systems, who have the ability to learn systems, whether it’s AI or otherwise,” he predicts. “And I think that won’t change.”
Wah adds, “I think we’ll reach a point where AI will be what you make of it, and there’ll be incredible power with it.”
Related: Veteran fund manager issues dire S&P 500 warning for 2025
