A recent study found that MBA program applications have risen by 12% this year, with finance being the top concentration. However, aspiring MBAs—especially those from prestigious institutions like Harvard hoping to secure lucrative jobs on Wall Street—should be cautious. Their advanced degree may not guarantee employment, as the rise of AI is significantly impacting job prospects. Wall Street has long been romanticized in media, drawing elite MBA graduates with the lure of high starting salaries around $150, 000. Yet, the landscape is changing. Investment firms are increasingly integrating AI into their operations, potentially displacing many employees, including new MBAs. For instance, Goldman Sachs has invested millions in a large language model that assists investment bankers by analyzing extensive data, summarizing files, and translating languages. This AI serves as a "copilot, " enhancing efficiency but also reducing workforce needs. Morgan Stanley has launched its own AI assistant, capable of quickly analyzing vast amounts of research, taking notes, and providing key updates, while JP Morgan Chase employs AI for various banking functions, from wealth management to market analysis. UBS has developed an AI for its Mergers and Acquisitions division that swiftly assesses numerous firms to identify potential buyers and targets.

Such advancements are not just isolated cases; many major investment banks and venture capital firms, including Citigroup and Barclays, are investing in AI applications and infrastructure to enhance decision-making and operational efficiency. The advent of AI is likely to make entry into investment banking more challenging and will change the skills required for new hires. Citigroup has acknowledged that AI could displace over 50% of banking jobs. Current AI applications are just the beginning, and as they mature, they may soon outperform the complex tasks traditionally handled by highly paid MBAs. Investment firms prioritize profitability, and AI allows them to save time and resources. Why pay for human input when machines can do the work more efficiently and without the costs of bonuses?While some skilled individuals will still thrive by mastering these AI tools, the reality remains that many traditional roles may disappear. Despite reassurances from firms that AI won't eliminate jobs, it's clear the technology is already disrupting the market, and aspiring MBAs should be aware of this shift.