Agreed.alanbrenton wrote: ↑Jan 8th, 2019 1:18 pmNot a lot of PE activity in Canada (compared to the States of course), maybe except for PE arms of the bigger pension funds.
Excel already automates the number crunching. What more can AI do?
The deal makers' jobs and their direct reports; are going to be safe for a while. Look at all the technology we have today, it's all about making it a fraction of a millisecond faster to spend money (Google Pay / Apple Pay, Paypal, etc.) but nothing about how to make our money work harder for us. AI cannot replace the wheeling and dealing that happens behind close doors, unless it is allowed to give out money via fund transfer.
Everything eventually can be automated; it's more about what are low-hanging fruit in terms of automation. Execution of trades, access to market pricing etc - these can and are being automated. I think for ibanking, at the junior level, the next evolution will be outsourcing the basic comps/precedents/company profiles to India or wherever lower cost employees can crunch the numbers. At the more senior levels it's about advising on strategy and it's about relationship management. Those roles will not be automated any time soon - maybe when we don't have CEOs running companies anymore, they won't need to pick the phone up and ask a senior banker advice on how to tackle certain issues but that's a ways off.
And yeah, most PE in Canada is pretty substandard. There are a few great funds - Onex/ONCAP, Brookfield, Birch Hill, Altas, Torquest etc but the rest are ho-hum. Pensions play in big deals but if you're not looking to make partner and get 'carry' (which doesn't happen in pensions), you'd have to really love PE or the work life balance to want to do that role as a career.