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Who's going to work on all these AI projects at the big banks?

May 24, 2023, 17:53 IST
Business Insider
Samantha Lee/Business Insider

Hey there! Dan DeFrancesco in NYC. No, I won't be taking a page out of this Swedish newspaper's book and rapping the newsletter.

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This is the last call for questions for Friday's mailbag. Get them in while you can. Submit any questions you have via this Google doc. (It's anonymous.) No personal finance questions, please.

Today, we've got stories on another way the ultra-rich make sure their generational wealth lasts for generations, our annual list of the top 100 early-stage investors, and some places that aren't incredibly expensive to live in.

But first, please don't go.

If this was forwarded to you, sign up here. Download Insider's app here.

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1. Wanted: AI engineers willing to stick around.

Big banks have an AI dilemma, but it's not the one you think.

Everyone seems to agree that artificial intelligence is going to upend Wall Street. Figuring out the best way to apply the tech to various business lines is a top priority among finance firms.

But there's a problem: No one can hold on to the people meant to do all the work.

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Insider's Paige Hagy and Bianca Chan have a fascinating story on how AI talent doesn't seem to be sticking around at big banks.

Data collected from analytics firm LeadGenius and Punks & Pinstripes, a network of Fortune 500 executives, indicated that big banks are hiring AI employees, on average, just as quickly as they lose them.

What's even more foreboding is that AI talent isn't leaving for other banks. Instead, the majority are exiting financial services entirely.

It's a trend that was reiterated by conversations Paige and Bianca had with a handful of headhunters in the space, who also outlined the three problems big banks have retaining AI talent.

The challenges banks face in trying to attract and retain tech talent, in general, have been well documented. (Bianca and Reed Alexander have a fantastic piece on the bank vs. fintech talent wars.)

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But struggling to hold on to AI talent seems especially concerning when one considers what's at stake — like, uh, humanity — and the speed at which it'll happen.

Here are the three reasons banks can't seem to hold on to AI talent.

In other news:

Aileen Lee, Ameet Shah, Serena Williams, Dan Teran; Insider

2. How the ultra-rich set up their families for generations. Dynasty trusts are rising in popularity as the uber-wealthy look for a way to pass on their money to distant heirs while saving on taxes. Here's how it works.

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3. The top 100 early-stage investors you need to know. The Seed 100, our annual list of the best investors focused on young startups, is out. Check out the full list, which includes a legendary former NFL quarterback. And while you're at it, here's the Seed 30, our ranking of the best women early-stage investors.

4. Former Binance insiders alleged the crypto exchange mishandled customer funds. Well, well, well, how the turntables. The crypto giant, whose CEO and founder feuded with FTX's Sam Bankman-Fried, "commingled customer funds and company revenue," Reuters reported, citing three sources familiar with the matter. Binance denies "mixing customer deposits and company funds." Read about it here.

5. What bank crisis? The fall of SVB and First Republic scared away some people from launching their own small bank. But for others, it was proof of a market opportunity. Meet the founders launching new banks in the wake of a crisis that rocked regional lenders.

6. Patience is a virtue for Wall Street landlords. High interest rates aren't just frightening for individual homebuyers. Corporate landlords are holding off on buying up homes. Here's what that means for the rest of us.

7. Inside Sequoia's push to dominate AI. As every investor races to get on the AI bandwagon, Sequoia is experimenting with new techniques to get an edge. This is how they're looking to woo founders.

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8. Why there is no such thing as "enough" on Wall Street. The story of Khe Hy, who climbed the ranks at BlackRock before walking away from a seven-figure salary at only 35 years old. Here's why.

9. The most-affordable cities in the US. Sure, they don't have the glitz and glamour of New York or Los Angeles, but they also come with much more reasonable prices. US News & World Report released its ranking of the cheapest places to live in the US. Here's the list of places where the cost of housing is typically less than 25% of what most residents make. But if you are in the market to buy a place, read this story on five red flags to look out for in real-estate agents.

10. Don't let that desk job destroy your body. These four fitness hacks can help reverse the damage that comes from sitting at a desk all day. Check them out.

Curated by Dan DeFrancesco in New York. Feedback or tips? Email ddefrancesco@insider.com, tweet @dandefrancesco, or connect on LinkedIn. Edited by Jeffrey Cane (tweet @jeffrey_cane) in New York and Nathan Rennolds (tweet @ncrennolds) in London.

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