Envision a Wall Street banker utilizing AI. The common image might be an analyst using AI for quicker pitch decks, models, and memos. Kevin Buehler foresees a broader transformation: the firm’s structure itself may evolve. As AI tools increasingly integrate into financial workflows, they might shift who executes tasks, how senior staff engage with AI, and where human judgment fits.

During the recent “AI Impact Forum” webinar titled “AI in Finance: From Individual Adoption to Enterprise Transformation,” Buehler, chief innovation officer at Rogo and senior partner emeritus at McKinsey & Company, noted AI’s growing influence in finance beyond individual productivity.

The Impact of AI-Native Companies

Dr. Ranjit Tinaikar, the series host, introduced Rogo as an AI company for financial institutions, part of a group that blends old software-service boundaries. Their flagship product, Felix, exemplifies how these tools impact bankers, investors, and regulated entities. Felix automates tasks that once took extensive time from junior bankers, like creating pitch materials, spreadsheets, and analyzing acquisitions.

Buehler discussed how AI’s efficiency gains might influence firms’ structures. AI might reduce long hours but also allow firms to redirect people to client work, coaching, or tasks necessitating more judgment. This approach could reshape organizations currently based on many layers of junior labor into different configurations.

Redefining Organizational Structures

“Right now most firms resemble pyramids,” Buehler pointed out. “We envision a shift to skyscrapers.” This new model has senior managing directors and partners at the top. Below them are professionals skilled in AI, managing complex workflows with automated systems. At the base are specialized agents handling domain-specific tasks.

The skyscraper model prompts questions about job impacts. AI might eliminate some manual work tasks traditionally done by large analyst classes. Firms will decide whether to transform saved time into cost reductions, more client interactions, training, or new tasks.

An example from DBS, a Singaporean bank, highlighted by Buehler, shows how technology upgrades and retraining can boost both technical skills and revenue without focusing solely on cost-cutting.

Navigating the Transition Period

“I am broadly optimistic,” remarked Buehler. “However, I am cautious about the transition.”

Implementation within financial firms may be uneven. Tinaikar mentioned a common tech adoption trend: Senior executives discuss new tools, but junior staff tend to use them first. Buehler observed similar patterns with AI adoption.

According to Rogo’s experiences, design might shift patterns. Senior users may adopt AI more when it aligns with their existing practices. For instance, Buehler uses Felix from his phone or email, producing analyses and iterating work as done with a team.

Beyond initial users, shifting entire workflows with AI, like M&A processes, becomes challenging. Full integration means gathering documents, building financial models, and managing data without breaching security, compliance, or accountability.

Oversight and Governance Challenges

In finance, rigorous oversight is essential. AI tools like those from Rogo include documentation trails linking numbers to trustworthy sources, whether public filings, market data, or internal records. Bankers must validate judgments beyond refining AI’s outputs.

Buehler, experienced in risk and cybersecurity, stressed AI heightens security demands. Rogo uses strict data retention, ongoing penetration testing, and maintains a security board. Banks also test models and features independently.

Rogo’s approach combines the Felix platform with bankers and engineers, embedding AI capabilities into client-specific workflows. This method might challenge conventional software-service models where providers stayed within limited scopes.

The lesson is specialization. Firms in regulated fields can’t afford superficial familiarity. “Get extraordinarily deep and understand your clients as well as they understand themselves,” advised Buehler.

Final Thoughts

AI can expedite deck creation or company analysis. The real challenge is for financial firms to redesign workflows, training individuals for decision-focused roles while ensuring automation doesn’t surpass oversight.

Buehler emphasized, “Banks require a human ultimately accountable. Nothing reaches clients directly.”

To explore further, consider watching the discussion between Tinaikar and Buehler. Additionally, register for the next “AI Impact Forum” webinar focusing on India’s role in AI’s economic benefits, featuring Shri Ashishkumar Chauhan of the National Stock Exchange of India. The webinar occurs on Thursday, July 23, at 10 a.m. Eastern.