Is AI really killing finance and banking jobs? Experts say Wall Street's layoffs may be more hype than takeover—for now

By Emma Burleigh
Reporter, Success
December 21, 2025, 7:30 AM ET

According to banking and management experts, the anticipated impact of AI on Wall Street appears to be more of a narrative than a reality at this point in time.

In a recent letter to shareholders, Jamie Dimon, CEO of JPMorgan, acknowledged a daunting prospect: AI "may reduce certain job categories or roles," likening its potential impact on employment to that of the printing press, steam engine, electricity, and the internet. With numerous financial giants, such as JPMorgan, Goldman Sachs, and Morgan Stanley, conducting significant layoffs throughout 2025, the narrative surrounding AI's responsibility for these reductions has gained considerable traction. However, industry experts emphasize that the notion of an AI-induced takeover of finance jobs is largely unfounded, at least for the immediate future.

The banking sector's workforce reductions, resulting in a significant shift in employment dynamics, have understandably raised concerns. Financial companies are increasingly investing billions into AI technologies, with names like Socrates taking on the tasks traditionally handled by junior analysts within mere seconds. Additionally, a report from Citigroup indicates that 54% of financial roles have a high potential for automation, surpassing other sectors. Despite these findings, experts predominantly agree that layoffs attributed to AI remain minimal, with the majority of workforce cuts being a direct outcome of overhiring during the pandemic and current economic volatility.

Robert Seamans, director of the Center for the Future of Management at New York University Stern, explains to Fortune, “If there's a large company that might say, 'Well, 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.” He elaborates, noting that “AI is often a scapegoat for broader issues, as it is more convenient to attribute job losses to AI rather than to factors such as weakening consumer demand, uncertainties arising from tariffs, or previous overhiring during the post-COVID recovery.”

Current forecasts suggest that while AI has not yet reached a stage capable of fully replacing roles such as bankers and consultants, certain functions in marketing and accounting may be more vulnerable. Notably, elite business degrees remain valuable as many leading MBA graduates continue to secure positions soon after graduation. However, the overall job landscape may be contracting, with the banking sector likely to face stagnation in headcount growth for several years as AI-driven productivity advancements take center stage.

AI is stifling hiring in the banking industry—and it could last for years

Despite the notable layoff trends in Wall Street firms, aggregate employment figures in banking and finance have shown relative stability over recent years.

Pim Hilbers, managing director at BCG specializing in banking and talent, shares with Fortune, “The general headcount trend in the banking industry over the last decade is stable to slightly declining. I don’t see that changing anytime soon.” He clarifies that although job security within institutions may appear constant, it does not eliminate mobility among employees.

Evidence supports this observation as America’s leading financial institutions have avoided sweeping workforce reductions. For instance, Bank of America registered a mere decline of four employees at the end of Q3 2025 compared to the previous year. Conversely, JPMorgan increased its staffing by 2,000, predominantly in corporate operations, while Goldman Sachs maintained a workforce of 48,300 in September, a net gain of approximately 1,800 from the previous year despite several rounds of layoffs.

Industry experts contend that banks are not yet prepared to make substantial cuts to their staff. Many institutions aim to capitalize on efficiency gains facilitated by AI, maintaining current employee levels for as long as feasible. Predictions indicate that this period of cautious hiring practices may persist for several years.

Mike Abbott, industry group lead for Accenture’s banking and capital markets, observes, “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.’ That’s probably the predominant mindset: I simply won’t have to hire for 24 months because I can achieve productivity.” He adds, “As attrition occurs, fewer hires may be necessary, but eventually a point will be reached where hiring will resume.”

Top MBA students are still succeeding—but job offers are declining

The fluctuations in hiring trends have not gone unnoticed by MBA graduates, who are beginning to sense the tightening job market. Among the class of 2025 at Columbia Business School, approximately 92% secured job offers, along with 86% of this year’s NYU Stern MBA graduates. Last year, 93% of Wharton students reported job offers, and 85% of Duke’s cohort achieved similar success.

However, faculty at these prestigious business schools caution that these metrics do not represent outcomes across all MBA programs. Columbia and NYU Stern, positioned at the core of U.S. finance in New York City, benefit from significant resources that enhance student skill sets and market positioning. Daniel Keum, associate professor of business at Columbia, notes that proficiency in Python is nearly mandatory for MBA students at the institution.

Despite the high job offer rates, scrutiny reveals that opportunities are diminishing in scope. Job placement rates across all of America’s elite MBA programs, dubbed the "magnificent seven" — including Northwestern, MIT, Stanford, and Harvard — have experienced declines since 2021, according to a Bloomberg analysis. For example, in 2021, only 4% of Harvard MBA graduates had not secured a job offer within three months of graduation; by 2024, that number increased to 15%. Similarly, MIT saw its percentage of graduates without offers rise from 4.1% to 14.9% within three years.

The finance roles that are still safe—and the ones most at risk

As AI continues to evolve in its capacity to undertake fundamental tasks such as preparing presentations, synthesizing client data, and managing financial records, concerns have escalated regarding the security of junior-level analyst positions. Nevertheless, experts assert that not all roles within the finance sector are equally susceptible to automation, identifying specific occupations that may face greater risks in the AI era.

Counterintuitively, the entry-level financial staff engaged in routine tasks, such as crafting detailed PowerPoint presentations, may not be the first to see their jobs eliminated. Keum explains to Fortune that consulting and banking positions have demonstrated a robust resistance to automation. The inherent complexity and margin of error in these roles, where clients demand precision, necessitate human involvement, making complete automation challenging.

“Banking consulting is actually holding its ground quite well. Consider issues of compliance, where a 1% error is intolerable. Such precision cannot be compromised,” Keum states. “This is why many analyst roles at firms like McKinsey and Bain have faced automation while still remaining heavily reliant on human resources.”

Furthermore, Abbott forecasts a widespread increase in technology-related hiring. According to Accenture data shared with Fortune, approximately 76% of banks plan to boost their technology workforce due to advancements in AI. However, certain roles may suffer from the influx of AI-driven efficiency. An estimated 73% of banking employees in the U.S. may experience significant impacts from generative AI, with early adopters expected to see productivity enhancements of 22% to 30% in the coming three years. Keum particularly highlights that accounting and marketing positions are likely to be among the most affected.

“Accountants are facing significant challenges,” Keum remarks. “AI can effectively ensure the accuracy of financial data derived from physical receipts. Consequently, hiring trends in this field are leaning toward a focus on preserving only senior positions.”