AI is set to change the way that dealmaking teams at investment banks work in the coming year, according to top bankers, who said that their work with the technology is only just starting.
Banks have poured resources into AI throughout 2025 in a bid to streamline the dealmaking process and remove some of the grunt work carried out by juniors.
But senior bankers in the City believe that the efficiencies AI can offer are not yet being fully tapped, and that 2026 will see projects launched that could upend the way they work.
“A great deal of what is currently done in a large bank can and should be done more efficiently when possible, and AI is a big part of that,” said Bob Diamond, the former chief executive of Barclays, now CEO of Atlas Merchant Capital.
“There are any number of roles that existed in banking and trading when I started my career that no longer exist today. The industry is constantly changing and adapting.”
After scoping out use cases for AI in 2024, investment banks have spent much of this year rolling out new projects that look to cut drudge work and allow them to work on more deals. JPMorgan launched an internal AI platform called LLM Suite, which can produce a pitchbook in seconds, according to bankers.
“The industry is constantly changing and adapting”— Bob Diamond
Meanwhile Goldman Sachs offered its ‘GS AI Assistant’ to all employees in June and UBS gave staff access to its ‘M&A co-pilot’, which allows bankers to analyse hundreds of thousands of companies. BNP Paribas offered its dealmakers an ‘IB Portal’, which taps previous pitches to save time on upcoming transactions.
“AI is already being looked at for how it can streamline pitch preparation, due diligence processes, and market analysis, and where such efficiency gains can allow more professionals to focus on high-value strategic advice and relationship building,” said Dominic Hudson, head of European and Apac investment banking, RBC Capital Markets.
Bea Martin, president of UBS in Emea, who is also set to take the group chief operating officer role at the Swiss bank in January, said that AI is being used to boost productivity.
“We use AI to reshape our business capabilities by improving client focus, speed, accuracy and productivity across all areas of our business. We expect this focus on transformation to accelerate in the coming year,” she said.
Inevitably, questions have been raised about how many junior bankers will be needed as AI takes some of the heavy lifting. As yet, systems cannot produce a credible pitch deck, bankers told Financial News in October, but it may not be far off.