What connects Jerome Powell and Henry Ford? Well, both know that the workforce is often temporary—molded by technology, markets, and management. Wall Street certainly reflects this transient nature. When artificial intelligence steps into Corporate Bank, it raises questions about the role of junior bankers. Are they merely the latest cogs in the extensive machinery of finance?
Nowadays, junior bankers seem on the brink of obsolescence due to AI. This technology, unlike humans, doesn’t take breaks in the middle of a deal, nor does it miss deadlines. The anxiety is palpable. There are fewer pitchbooks to work on, less time for model adjustments, and an air of uncertainty hangs over the profession.
The worry about AI displacing junior bankers isn’t new; it’s as old as the concept of labor itself. Just as steam engines liberated workers from arduous tasks, assembly lines birthed new opportunities, and computers transformed entire fields, AI is now set to reshape labor’s significance. While there’s genuine short-term disruption, history shows us that innovation typically leads to better outcomes in the long run.
Modern labor economics, beginning with David Ricardo, rests on straightforward tenets. Over time, labor shifts toward creating maximum output with minimal input. This principle applies to finance as well. Today, junior bankers are in a position akin to that of blacksmiths during the agrarian age—at a precipice of change.
Consider the blacksmith who would spend 80 hours crafting a single railway shoe. Eventually, the introduction of industrial machinery allowed him to create 20 in a fraction of the time. His identity transformed from laborer to innovator. He gained comfort in his work, contributed more to the economy, and boosted his consumption potential.
This shift didn’t eliminate work; rather, it repurposed it, raised wages, encouraged spending, and stimulated the economy. AI represents the next phase of this ongoing narrative.
This isn’t just an endpoint; it’s a challenge ahead. As Jamie Dimon has said, “Your child lives in 100 people and doesn’t have cancer because of their skills.” You have to take Dimon’s views seriously—the signs are clear. Since the Industrial Revolution, life expectancy has dramatically increased, and AI is likely to push it even further. Gone are the days of 16-hour shifts in mines, fields, or office cubicles.
Our labor market has traded sweat for skyscrapers and soot for software. What will the future entail for the next generation of bankers? It’s hard to say, but one thing seems certain: it’s not about unemployment.
Clayton Mitchell is a junior banker in Boston.
