Wall Street is experiencing a transformative AI revolution as major financial institutions race to integrate artificial intelligence into their operations. According to consulting firm ThoughtLinks, AI is set to reshape roughly 44% of banking work by 2030, prompting the industry’s biggest players to invest billions in the technology.
JPMorgan Chase leads the charge with an $18 billion annual technology budget, with AI as a central focus. The bank has rolled out generative AI tools to more than 200,000 employees, and CEO Jamie Dimon is described as a “tremendous” user of these platforms. JPMorgan’s asset-management arm is replacing human proxy advisers with Proxy IQ, an in-house AI platform that analyzes data from over 3,000 annual company meetings.
Goldman Sachs is investing $6 billion in technology this year, with CEO David Solomon wishing the figure were higher. In an October memo, the bank revealed AI would drive efficiency, slow hiring, and lead to a “limited reduction” in roles. Goldman has deployed internal AI tools, including an assistant now available firm-wide.
Morgan Stanley, an early OpenAI partner, has focused on converting employee ideas into working AI products. Its internally built tool DevGen.AI has saved engineers more than 280,000 hours this year. Among interns, 72% report using ChatGPT daily or several times weekly.
Citigroup has accelerated its AI push, with nearly 180,000 employees across 83 countries accessing proprietary AI tools that have been used almost 7 million times this year. CEO Jane Fraser reported the bank’s generative AI tools are saving about 100,000 developer hours weekly through automated code reviews.
Hedge funds are equally aggressive in AI adoption. Citadel’s stockpickers use an internal chatbot to accelerate processes, while Bridgewater launched an AI-driven fund in 2024. Point72, Balyasny, Man Group, and Viking Global have all developed internal AI offerings.
Private equity firms like Blackstone, Carlyle, and EQT are leveraging AI for deal sourcing and data analysis. Asset managers including BlackRock have introduced Asimov, an agentic AI platform for fundamental equity business. Even fintechs like Kraken, Block, and Chime are building AI agents to write code and streamline operations.
Key Quotes
AI is set to reshape roughly 44% of banking work by 2030
According to consulting firm ThoughtLinks, this statistic underscores the massive transformation facing the banking industry and explains why major institutions are racing to deploy AI solutions before competitors gain an insurmountable advantage.
CEO Jane Fraser said the bank’s generative AI tools are saving about 100,000 developer hours a week through automated code reviews
Citigroup’s CEO highlighted concrete productivity gains from AI implementation, demonstrating that these investments are delivering measurable returns rather than remaining theoretical benefits. This represents millions of dollars in cost savings annually.
In an October memo outlining the latest phase of its OneGS initiative, the bank said AI would drive efficiency, slow hiring, and lead to a ’limited reduction’ in roles
Goldman Sachs’ internal communication reveals the employment implications of AI adoption, acknowledging that increased efficiency will result in fewer human workers needed—a reality many financial institutions are facing as they automate routine tasks.
Morgan Stanley’s DevGen.AI has already saved engineers more than 280,000 hours this year
This quantifiable metric from Morgan Stanley demonstrates the dramatic productivity improvements AI tools can deliver, equivalent to approximately 135 full-time employees working year-round, showcasing why banks view AI as essential infrastructure.
Our Take
Wall Street’s AI arms race represents one of the most significant technological shifts in financial services history. What’s particularly striking is the uniformity of adoption—from bulge bracket banks to hedge funds to fintechs, every major player is investing heavily in AI capabilities.
The competitive pressure is palpable. Firms aren’t just experimenting; they’re deploying AI to hundreds of thousands of employees and measuring success in hundreds of thousands of hours saved. This creates a feedback loop where early adopters gain advantages that force competitors to accelerate their own efforts.
However, the employment implications deserve scrutiny. While firms emphasize productivity gains, the reality is that AI is designed to replace tasks previously performed by humans, particularly junior-level analytical work. This could fundamentally alter the traditional apprenticeship model in finance, where young professionals learned by doing grunt work. The industry must grapple with how to train the next generation when entry-level tasks are automated.
Why This Matters
This comprehensive overview reveals the scale and speed of AI adoption across Wall Street, signaling a fundamental transformation of the financial services industry. The investments are staggering—JPMorgan alone spends $18 billion annually on technology—demonstrating that AI is no longer experimental but mission-critical.
The implications for employment are significant. While AI promises productivity gains and cost savings, Goldman Sachs explicitly mentions “limited reduction” in roles, and the technology is designed to eliminate grunt work traditionally performed by junior analysts. This could reshape career paths and skill requirements across finance.
The competitive dynamics are intensifying. Firms that successfully deploy AI gain advantages in speed, accuracy, and cost efficiency. Hedge funds using AI for research and trading can process more data and identify opportunities faster than competitors. Banks automating processes like proxy voting and code reviews free up human capital for higher-value work.
This trend extends beyond Wall Street, as financial services often pioneer technologies that spread to other industries. The tools and approaches being developed—from agentic AI to internal chatbots—will likely influence how organizations across sectors approach AI implementation.
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Source: https://www.businessinsider.com/how-wall-street-is-using-ai-jpmorgan-goldman-citi-blackstone