Picture a Wall Street banker using AI, not just as a tool for building pitch decks and models, but reshaping the entire structure of the firm. Kevin Buehler highlights this potential shift, as specialized AI tools delve deeper into financial workflows. This could change how work is done, how senior staff interact with AI, and where human judgment is applied. During Newsweek’s ‘AI Impact Forum’ webinar, Buehler, Chief Innovation Officer at Rogo and senior partner emeritus at McKinsey & Company, discussed moving beyond individual productivity improvements to enterprise transformation.
Dr. Ranjit Tinaikar, series host, described Rogo as an AI firm that bridges traditional software and services. Felix, Rogo’s workflow for financial services, was the focus of the discussion. Buehler explained how Felix can manage tasks once handled by junior bankers, like producing materials, spreadsheets, and analyzing data. The key question remains how firms will use the freed capacity.
‘I think this elevates the work that folks can do,’ Buehler stated.
Banks might reduce late hours or reassign staff to client-oriented roles or tasks needing more judgment. Such choices could reshape firms traditionally built on layers of junior labor.
‘Right now most firms look like pyramids,’ Buehler noted. ‘We think we’re going to see a shift towards skyscrapers.’
In this new model, senior managing directors or partners are at the top, supported by AI-savvy professionals running complex workflows. At the base are agents specialized in various tasks.
The shift raises questions about jobs. AI may automate manual tasks, reducing the need for large analyst classes. Buehler suggested this isn’t simply a displacement story. Firms might choose to use saved time for cost reductions, client engagement, training, or new work avenues.
Buehler cited DBS in Singapore as an example from his McKinsey work. The bank improved technology, data, and AI capabilities, retraining staff to focus on mid-market clients. This led to growth in revenue and market share without purely cutting costs. He cautioned that the transition period could prove uneven.
‘I am on balance optimistic,’ Buehler said. ‘The one thing I am cautious about is the transition.’
Adoption in financial firms may also vary. Tinaikar noted a common pattern in technology adoption: senior executives discuss tools, but junior employees often use them first. Buehler confirmed this is true with AI.
‘Almost every AI tool that I’ve seen has more junior adoption than senior adoption initially,’ he noted.
Rogo’s experience shows design can encourage senior adoption by aligning AI with their existing workflows. Buehler used Felix directly from his phone or email to produce analyses, iterating as with a physical team.
Adopting AI becomes more challenging after initial users. Junior employees may start first. Senior adoption is tougher. The next step involves transforming entire workflows, such as an end-to-end M&A process, instead of just speeding up existing tasks.
In a sale process, AI could help gather documents, build models, prepare materials, create data rooms, aid due diligence, and manage bidding. The challenge is linking these steps securely and compliantly.
Buehler emphasized the importance of oversight. Rogo includes sourcing citations for every figure, traceable back to filings or internal data. Bankers must ensure the judgements align with the firm’s standards, beyond surface checks.
‘We’re all going to have to understand how to do that with AI as the input, not the final output,’ Buehler remarked.
Governance challenges extend beyond individual files. Strong security practices are vital. Buehler highlighted Rogo’s stringent data policies, continuous testing, and an advisory board. Banks must also test new models and features.
Buehler emphasized the importance of focus for companies in regulated fields. Firms can’t be generalists; they must choose a market and deeply understand it.
‘Get extraordinarily deep and understand your clients as well as they understand themselves,’ he advised.
AI can speed up tasks, but the true test is whether firms can redesign workflows and train staff for roles that demand judgment, ensuring automation doesn’t bypass oversight.
‘Banks demand that you have a human who’s ultimately responsible,’ Buehler stressed. ‘Nothing goes direct to the bank’s clients.’