Chris Chapman, an executive partner at Goldman Sachs and head of the firm's flagship AI project "Market," has warned that the rapid adoption of AI on Wall Street could lead to a decline in the cognitive abilities of the next generation of financial professionals. In an interview on the "Exchanges" podcast, he openly stated that outsourcing reasoning to models could result in "cognitive atrophy," making it difficult to think from first principles.

"The Devilish Trade" and the Dilemma of the Mentorship System

Chapman likened the situation to how navigation and memory are being replaced by technology, as algorithms take over complex analysis, leading bankers to lose their analytical skills. AI is deeply embedded in trading and banking operations on Wall Street, which may boost short-term profits but could erode the foundation of expertise in the long run. In other words, newcomers need to learn decision-making through daily practical work, but if training opportunities are taken away by AI, companies will sacrifice the mentorship culture and reduce the demand for junior bankers.