Wall Street talent war: Banks engage in cutthroat competition for AI experts

In a heated battle for the best minds in artificial intelligence (AI), Wall Street banks are poaching rival talent, with Goldman Sachs taking a notable hit in the past year.

According to a Bloomberg report, citing data compiled by consultancy Evident, Goldman Sachs witnessed a net outflow of 60 AI professionals to competitors like Morgan Stanley and Citigroup in the 12 months through September. This represents the largest exodus among major rivals.

While this departure is a fraction of Goldman Sachs' global workforce of nearly 46,000, it sheds light on the fierce competition for top AI talent.

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Commenting on the data, Alexandra Mousavizadeh, CEO of Evident, emphasised the importance of not just hiring but also nurturing and retaining AI talent.

Evident's analysis covered roles in AI development, model risk, data engineering, and software development, showcasing the intense rivalry for AI expertise. Despite the small proportion of departures among thousands of AI staff in banks, these roles are highly coveted and often command some of the highest salaries.

Last year, median compensation for employees in AI-related roles in the US was $901,000, while their European counterparts earned $676,000, according to a report by Heidrick & Struggles. The data presented by Evident does not encompass banks' hiring of AI talent directly from universities and consultancies.

Goldman Sachs, facing a net loss of 106 AI-focused staffers to rivals, has been actively hiring to attract top AI talent. However, this outflow highlights the intense competition in the field. Other banks, such as Bank of America and Wells Fargo, have also experienced shifts in their AI talent pool.

Bank of America saw a net loss of 55 staffers, while Wells Fargo witnessed the largest net increase with 130 people. While JPMorgan Chase & Co. lost 224 AI-focused staffers, it added 325 over the same period, securing one of the most significant net increases in talent among peers.

AI has become integral to the strategies of major banks, with JPMorgan’s CEO Jamie Dimon stating that he believes AI will enable employers to reduce the workweek to just 3.5 days. The recognition of AI's importance is also evident at Citigroup, which plans to empower its 40,000 coders with the ability to experiment with different AI technologies by the end of the first quarter.

(With inputs from Bloomberg)

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