Big banks are facing an AI dilemma, and it may be worse than you think. Artificial Intelligence is sure to have a major impact on Wall Street, but financial firms are struggling to find a way to put it to best use. Unfortunately, banks can’t seem to hold on to their AI talent, given the three main problems they face when trying to retain tech professionals.
The difficulties of attracting and maintaining tech employees have been well documented, and when it comes to Artificial Intelligence, the stakes are especially high. LeadGenius and Punks & Pinstripes data gathered by Insider suggest that as companies hire AI workers, they tend to lose them at the same pace. Not only that, but many of these specialists are leaving not just the financial sector, but the industry altogether.
Paige Hagy and Bianca Chan talked to some headhunters, who laid out the reasons why banks have difficulty keeping AI talent. The main issues boil down to money, skills, and lifestyle. Firstly, salaries for tech professionals in the finance industry are lower than those at leading AI companies. Similarly, financial institutions often lack the resources to help tech employees develop to their fullest potential. And, finally, these specialists don’t always enjoy the lifestyle they want.
Considering the importance of Artificial Intelligence in this digital age, it’s concerning that banks might not have the right people in the right places. Fortunately, there are efforts to build up the AI industry from the bottom up. Reed Alexander and Bianca Chan wrote how banks and fintechs are engaging in a talent battle, while Paige Hagy and Marc Rod shared details on how top firms such as Sequoia Capital are pushing hard to become more influential in the AI space.
This article explored the AI retentions problems at the big banks and the strategies some top companies have in place to help. Bank dependence on Artificial Intelligence and its use as a cornerstone technology in the finance space is certain to increase, so understanding this issue is important. Finally, it’s worth noting that big investors and financiers, such as ultra-rich individuals, are increasingly making use of tools such as dynasty trusts to ensure the longevity of their generational wealth.
