JPMorgan CEO Jamie Dimon issued a stark warning in his 2023 letter to shareholders: AI could slash certain job categories, much like the printing press, steam engine, electricity, and internet reshaped labor. Fast-forward to 2025, and Wall Street giants like JPMorgan, Goldman Sachs, and Morgan Stanley have announced layoffs amid heavy AI investments. Yet experts call this an "AI-fueled finance job takeover" largely hype—for now.
Banks are deploying AI tools like "Socrates" to handle junior analyst tasks in seconds, and Citigroup reports 54% of finance roles face high automation risk, topping all sectors. But layoffs stem more from pandemic overhiring and economic headwinds than AI alone, says Robert Seamans, director of NYU Stern’s Center for the Future of Management.
“AI is often a scapegoat,” Seamans tells Fortune. “It’s easier to blame than softening demand, tariff uncertainty, or poor post-COVID hiring strategies—with far less political risk.”
Banking Headcounts: Stable, Not Shrinking
Despite the headlines, financial employment holds steady. Bank of America ended Q3 2025 with just four fewer staff than in 2024; JPMorgan added 2,000, mostly in operations; Goldman Sachs grew to 48,300 despite cuts.
Experts like BCG's Pim Hilbers predict flat or slightly declining headcounts for years, with AI boosting efficiency to delay hiring. “Banks want productivity gains so they don’t need 100 more people for another billion in loans,” says Accenture's Mike Abbott. Attrition will ease the transition, but rehiring looms eventually.
For Gen Z and Millennials eyeing finance, this means a hiring freeze could persist—prioritize upskilling in AI-resistant areas now.
Elite MBAs Still Land Jobs—But Cracks Are Showing
Top programs shine: 92% of Columbia's 2025 MBAs, 86% of NYU Stern's, 93% of Wharton's 2024 class, and 85% of Duke's secured offers. Python is "almost required" at Columbia, per professor Daniel Keum, giving grads an edge.
Yet Bloomberg data reveals declines across elite schools like Harvard (4% jobless in 2021 vs. 15% in 2024) and MIT (4.1% to 14.9%). New York-based programs benefit from location and resources, but broader MBA outcomes lag.
Safe Roles vs. Those on the Chopping Block
Junior analysts crafting PowerPoints aren't the first to go—banking and consulting resist automation due to zero-error tolerance and deal-specific judgment, Keum notes. “Compliance can't accept a 1% mistake,” he says, explaining why McKinsey and Bain stay human-heavy.
Tech hiring surges (76% of banks plan increases per Accenture), but accountants and marketers face hits. AI nails receipt-based bookkeeping, slashing junior accounting roles; only seniors thrive. Generative AI could impact 73% of U.S. banking time, lifting productivity 22-30% for early adopters.
Takeaway for job seekers: Build expertise in high-stakes advisory, tech integration, and client-facing strategy. Finance won't vanish, but stagnation demands adaptability.