OpenAI hires ex-bankers for project on AI replacement of Wall Street analysts

In a bold step toward reshaping high finance, OpenAI has enlisted over 100 former Wall Street analysts to help train artificial intelligence (AI) systems capable of performing tasks traditionally reserved for junior bankers. Dubbed Project Mercury, the initiative has attracted professionals from elite firms such as Goldman Sachs, JPMorgan, and Morgan Stanley, who are now acting as "AI tutors" to teach OpenAI's models the intricacies of financial modeling and analysis.

A Tech-Driven Approach to Financial Expertise

The ex-bankers in this program are tasked with uploading their knowledge directly into the AI. For an hourly rate of $150, these contractors are submitting weekly financial models, such as discounted cash flow valuations for IPOs or merger analyses, to refine the AI's ability to replicate their work. This process includes creating detailed prompts, feeding in spreadsheets, and going step-by-step through the logic behind each model, all while tweaking the AI's performance based on feedback.

"OpenAI is working with experts to improve and evaluate [its] models across different domains", the company stated, framing the project as part of a broader effort to make its AI more applicable across various industries, including finance.

The goal is clear: to enable the AI to generate high-quality financial models, presentations, and valuations autonomously, cutting down on the manual grind of tasks commonly delegated to junior bankers. If successful, OpenAI's models could produce these outputs faster and more efficiently, without the need for long hours or constant oversight.

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Anxiety and Optimism on Wall Street

The emergence of an "AI analyst" has sparked both excitement and concern within the financial sector. Many junior bankers fear that tools like those developed under Project Mercury could render entry-level finance jobs obsolete. This fear is compounded by studies predicting significant disruption: one analysis suggests that up to 50% of entry-level tasks in finance could be automated within five years, and a Goldman Sachs report estimates that 300 million jobs globally may be affected by AI automation in the coming decade.

As one observer put it, these ex-bankers are "training their own replacement" in the form of a tireless, cost-free chatbot capable of handling tasks like financial modeling, due diligence memos, and investor presentations.

Despite these concerns, industry leaders remain optimistic about the future of human talent in finance. David Solomon, CEO of Goldman Sachs, acknowledged the rapid pace of AI advancements but emphasized that the technology will not outright replace humans. "Yes, there will be job functions that shift and change… But I’m excited about it. If you take a three-to-five-year view, [AI is] giving us more capacity to invest in our business", Solomon said, highlighting the potential for AI to boost productivity while allowing bankers to focus on higher-value activities like strategic thinking and client relationships.

Similarly, JPMorgan’s CEO Jamie Dimon has expressed his belief that AI will both eliminate some roles and create new ones, including positions like AI programmers and data scientists. This sentiment aligns with the rise of roles such as "prompt engineers", who specialize in crafting inputs to maximize the effectiveness of AI models.

Banks Race to Adapt

Far from resisting the AI revolution, financial firms are racing to embrace it. Banks are heavily investing in integrating AI into their workflows, with some even partnering with startups to stay ahead. For instance, JPMorgan’s investment arm recently participated in a $50 million funding round for Rogo, a startup developing tools to assist with financial research and modeling. According to the International Head of Investment Banking at Nomura, integrating such AI tools is "going to transform how we deliver value to clients."

Goldman Sachs itself employs 13,000 engineers - approximately a quarter of its workforce - underscoring how much modern banking depends on cutting-edge technology. These firms see AI not as a job killer but as a powerful tool to enhance efficiency and maintain a competitive edge.

Human-AI Collaboration: The Future of Finance

While Project Mercury represents a leap forward in AI’s application to finance, the technology is not yet ready to operate without human oversight. Current models still lack the judgment, contextual understanding, and creative problem-solving abilities that experienced bankers bring to the table. As one AI researcher noted, "They’ll merrily produce an answer, but it takes a human to judge if the answer makes sense in the real world."

The most likely scenario in the near term is one of collaboration: junior bankers using AI tools to accelerate routine tasks while senior professionals focus on strategic, client-facing work. This new dynamic may even redefine the skill set required for finance professionals, with a growing emphasis on working alongside AI systems to maximize their potential.

OpenAI’s Project Mercury marks a significant step in the evolution of Wall Street, where the fusion of human expertise and AI capabilities could lead to greater efficiency and innovation. Whether AI analysts will become as indispensable as spreadsheets or reach a ceiling in trust and ability remains to be seen. But for now, the financial industry is preparing for a future where success hinges on adapting to and leveraging the power of artificial intelligence. As one tech CEO succinctly put it, "AI won’t replace you – a person using AI might."

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