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The Competition for AI Talent Intensifies in the Banking Sector

Summary

The departure of AI experts from Goldman Sachs Group Inc. and the increasing numbers at Citigroup and Morgan Stanley have revealed the fierce competition among banks to attract top talent in the field of artificial intelligence (AI). According to research […]

The Competition for AI Talent Intensifies in the Banking Sector

The departure of AI experts from Goldman Sachs Group Inc. and the increasing numbers at Citigroup and Morgan Stanley have revealed the fierce competition among banks to attract top talent in the field of artificial intelligence (AI).

According to research company Evident, the Wall Street banks have experienced a significant exodus of 60 experts in the past 12 months until September, the highest compared to rivals like Morgan Stanley and Citigroup Inc. Bank of America has also witnessed a substantial outflow of 55 employees, while Wells Fargo & Co. recorded the highest net growth with 130 new hires.

While these departures represent a small portion of the thousands of AI professionals in the banking industry, these numbers highlight the intense competition for AI talents. Employees specialized in data, analytics, and artificial intelligence can be among the highest-paid in any company.

Last year, the median salary, including annual stock awards, for employees in these fields in the United States was $901,000, while their European counterparts with similar experience earned $676,000, according to a report by recruitment company Heidrick & Struggles.

Evident analyzed roles in AI development, model risk, data development, and software development for their research. The data does not include the hiring of AI talents from universities and consulting firms.

Take Goldman Sachs, for example, which lost 106 employees to its competitors. This is only a small percentage of the bank’s nearly 46,000 global workforce. However, the bank has been actively hiring and investing to attract top AI experts. Earlier this year, Bing Xiang joined Goldman Sachs from Amazon.com Inc. as the Executive Director and Head of AI Research in the Engineering department.

“AI is here to stay”

The world’s largest banks have started to experiment more with artificial intelligence in recent months, driven by the promise of increasing employee productivity and reducing costs. For instance, Citigroup plans to equip its 40,000 programmers with the ability to experiment with various AI technologies by the end of the first quarter. Evident’s data shows that Citigroup has added 189 AI-focused employees in the last few months while also losing 196 employees in the same period.

“If you’re a bank and you don’t have an AI strategy, then you don’t have a strategy,” said a Wells Fargo analyst in an interview with Bloomberg Television. “AI is here to stay.”

JPMorgan Chase & Co. has thousands of open AI-related positions, and CEO Jamie Dimon believes this technology will enable employers to reduce the workweek to just 3.5 days. The company retained its top position in Evident’s AI Index this year, ranking banks according to their maturity level in AI.

JPMorgan lost only 224 AI-focused employees in the past period but added 325, according to Evident’s data.

“We are proud that our talent, insights, and AI solutions are once again recognized,” said Teresa Haytsenrether, JPMorgan’s Executive Director for Data and Analytics. “We remain committed to investing in these capabilities.”

Frequently Asked Questions

What does “AI” stand for?
The incredible speed of AI technology development has marked a significant advancement in the field of artificial intelligence. AI, which stands for Artificial Intelligence, refers to computer systems that can perform actions that require human knowledge and intelligence. This includes capabilities such as image recognition, natural language processing, problem-solving, learning from experience, and more.

What are the benefits of attracting AI talents for banks?
AI talents can bring multiple advantages to banks. For example, they can enhance employee productivity, reduce costs, and improve the services banks provide to clients, including personalized customer experiences and efficient risk management.

What are the current trends in hiring AI talents?
There is currently fierce competition among banks to attract the best experts in the field of artificial intelligence. These professionals can be among the highest-paid employees, further intensifying the competition. Banks recognize the importance of AI and investment in these talents to remain competitive and innovative in the market.