AI replaces junior banker work

Agentic AI can now do the routine administrative tasks that entry-level bankers used to perform. This means traditional entry-level roles are disappearing from the banking sector.

New graduates manage AI instead

Goldman Sachs executive Kevin Sneader says new employees will manage AI systems from day one rather than waiting years for promotions. They will oversee what he calls a virtual army of AI agents.

“When our young folks now start work, they're managing agents. They have to make the most of this virtual army that they've now got.”

The old career ladder breaks

Previously, junior bankers spent their first years doing administrative work before progressing to manage people. Now they will skip that stage and manage AI instead, upending traditional career paths.

Middle managers face uncertainty

Fewer entry-level workers mean fewer middle managers are needed to oversee them. Sneader acknowledged the risk to this group, saying Goldman does not yet know what will happen to middle management roles.

“We don't quite know what's going to happen to that group.”

The pyramid structure collapses

Banking has traditionally relied on a pyramid of many junior workers, middle managers, and few leaders. If AI eliminates the need for large numbers of entry-level workers, the entire structure could shrink significantly.