Software developers in financial services are fearful of AI taking over their jobs and it's more than mere paranoia. In a blog post this week, UBS's chief economist Paul Donovan wrote "much of computer coding already has the look of a stranded asset," something that "loses its value earlier than expected."
Code and coding are less valuable than they used to be. As banks cut costs, decommissioning legacy applications is all the rage. UBS said today that it's on track to cut 3,800 applications between 2023 and 2026. Banks are streamlining tech and focusing on automation; fewer developers will be required overall.
It's not just coding itself that Donovan has doubts about. He calls all STEM skills "vulnerable," and notes that they become "obsolete more quickly than other skills." That's bad news for quants too...
Fortunately, not all recruiters agree. Peter Wagner, managing director of boutique recruitment firm Affinity North, says that fundamental aspects of STEM, such as problem-solving and critical thinking, "will only be more in demand as the complexity of our technological world increases. "