Why do traders in investment banks feel their jobs are immune from AI, etc?
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Re: Why do traders in investment banks feel their jobs are immune from AI, etc?
#2Because investment bankers are just salespeople? Nobody is suggesting AI will replace salespeople in the near future. I could see there being fewer grunt analysts in the future, though.
Re: Why do traders in investment banks feel their jobs are immune from AI, etc?
#3Maybe with their work, labor costs are a relatively small portion of the product price?
Re: Why do traders in investment banks feel their jobs are immune from AI, etc?
#4The last few minutes of this documentary on Long Term Capital Management and its algorithmic failure will tell you why: https://vimeo.com/28554862
Re: Why do traders in investment banks feel their jobs are immune from AI, etc?
#5Everybody feels their job is safe from automation. Its the same way planes crash but not mine.
Believing "I am special", is just built into us.
Re: Why do traders in investment banks feel their jobs are immune from AI, etc?
#6Due diligence on the financials of a company (what investment bankers are supposed to do) is actually really hard to get right with the algorithms we have today. Much of the data and insight compiled by an I-banker today does not exist in an easily parse-able form for automated algorithms, and a substantial amount of the computation relies on common sense knowledge.
Re: Why do traders in investment banks feel their jobs are immune from AI, etc?
#7Everybody feels their job is safe from automation. Its the same way planes crash but not mine . Believing "I am special", is just built into us.
Regarding your airplane example, it's actually the opposite: plane crashes are so infrequent that you have to believe "I am special" (with a negative twist) if you think you are likely to be in a crash.
Re: Why do traders in investment banks feel their jobs are immune from AI, etc?
#8Because investment bankers are just salespeople? Nobody is suggesting AI will replace salespeople in the near future. I could see there being fewer grunt analysts in the future, though.
> Nobody is suggesting AI will replace salespeople in the near future.
They aren't? Because I see this happening all the time. Automated checkout lines, E-Trade and online brokerages, etc. Low-value transactions are handled more and more by electronic "salespeople". All it takes to reach high-value transactions as well is for the clientele to decide they trust machines more than humans, which is not all that unlikely given the many sources of human error involved.
It's possible that humans will be involved in high-value transactions like investment for a long time, since the marginal cost of human labor is low as the numbers get bigger, but it's not impossible to replace; we already have the technology.
Re: Why do traders in investment banks feel their jobs are immune from AI, etc?
#9HN title is significantly different than the question the submission actually asks which is "why do TRADERS in investment banks . . . " and should be updated
Re: Why do traders in investment banks feel their jobs are immune from AI, etc?
#10Due diligence on the financials of a company (what investment bankers are supposed to do) is actually really hard to get right with the algorithms we have today. Much of the data and insight compiled by an I-banker today does not exist in an easily parse-able form for automated algorithms, and a substantial amount of the computation relies on common sense knowledge.
It only takes one person to prove you wrong.