Artificial intelligence (AI) is now deeply embedded in the financial services industry. Banks, insurers, and asset managers are harnessing AI for fraud detection, algorithmic trading, compliance automation, and customer personalization. Yet the success of these initiatives depends on one scarce resource: people.
The demand for AI talent in financial services is outstripping supply. From data scientists to AI engineers to product managers, specialists who can build and deploy AI systems are in short supply. Financial institutions are now competing not only with each other but also with Big Tech, healthcare, retail, and government, who are all racing to attract the same professionals.
This article explores the forces driving demand for AI skills in financial services, the obstacles firms face in attracting and retaining these professionals, and strategies to build an AI-ready workforce.
Rising Demand for AI Talent in Financial Services
AI has moved from pilot projects to large-scale deployment across the industry:
- JPMorgan has dedicated $18 billion in tech spending, much of it toward AI, and has rolled out its proprietary generative AI suite to over 200,000 employees.
- Goldman Sachs has reported that AI already performs “95% of the work” on drafting IPO prospectuses, freeing bankers and analysts for higher-value work.
- Morgan Stanley built an internal AI tool that saved developers 280,000 hours in 2024 alone.
The industry’s appetite for AI talent reflects this shift. Between September 2024 and March 2025, banks grew their AI workforce by 12.6% in just six months—the largest in two years. JPMorgan, Wells Fargo, Citigroup, Bank of America, and Capital One lead the global AI hiring index, accounting for nearly half (48%) of all AI roles in the sector. Growth is strongest in AI software implementation (+42%), signaling a shift from experimentation to scaled deployment.
As firms expand their digital transformation programs, demand for AI-centered roles in financial services is expected to keep growing. The message is clear: the AI talent crunch is no longer a looming risk, but today’s reality.
Why Financial Services Firms Struggle to Attract AI Specialists
Despite strong demand, many firms struggle to compete effectively for AI talent. Several factors contribute:
Competition Across Industries
Financial services firms aren’t just up against each other. Healthcare, retail, manufacturing, energy, and government are all expanding their AI footprints, intensifying demand for a limited pool of skilled professionals. The broad applicability of AI makes financial institutions one of many suitors for scarce expertise.
Scarcity of Hybrid Skills
The rarest candidates are those who combine deep AI expertise with financial domain knowledge. Understanding both machine learning and regulatory, risk, or trading contexts is a scarce skillset, making these hybrid professionals especially hard to hire and retain.
Retention Challenges
Even when financial firms succeed in hiring AI talent, keeping them is difficult. Professionals in this field want to innovate. If constrained by bureaucracy, slow-moving processes, or a lack of engaging projects, they are quick to explore opportunities elsewhere.
The result is a cycle of long time-to-fill, rising costs, and high attrition that leaves financial institutions struggling to deliver on their AI ambitions.
Strategies to Compete for AI-Ready Talent
Winning the talent race requires more than outbidding competitors. Financial services firms need a comprehensive approach that balances compensation with culture, career opportunities, and long-term development.
1. Invest in Upskilling
One of the most effective ways to expand AI capability is to develop it internally. According to Evident Insights, three-quarters of banks are now training staff in AI skills, often using sandboxed environments and phased rollouts. Finance professionals in IT, risk, or operations can transition into AI-focused roles with the right support.
- Launch in-house AI academies and training programs.
- Provide mentorship and cross-functional rotations to build applied skills.
- Create career paths that reward internal mobility.
Upskilling not only builds talent pipelines but also improves retention by showing employees their skills are valued and their career growth is supported.
2. Build Early-Talent Pipelines
Relying solely on experienced AI hires is unsustainable. Competition for senior professionals remains fierce, but early-career graduates are increasingly turning to financial services. At Cornell, 22% of 2023 computer science graduates entered the sector, up from 16% in 2022. At Carnegie Mellon’s Heinz College, the share rose to 19% from 16% in prior years.
Building relationships with universities and research institutions ensures a steady flow of new talent.
- Sponsor AI-focused internships and apprenticeships.
- Partner with data science programs to identify top graduates.
- Engage students through competitions and hackathons.
This approach positions firms as early career accelerators while creating a loyal talent pipeline shaped around financial services needs.
3. Differentiate Beyond Pay
Compensation is important, but not the only factor. Financial services firms can stand out by emphasizing:
- Unique challenges: From global fraud detection to multi-market compliance, the problems AI teams solve in finance are complex and impactful.
- Scale of impact: Few industries provide access to data and projects with the reach of financial services.
- Career progression: Create technical leadership tracks and opportunities for cross-functional innovation.
Banks are turning AI leadership into a recruiting advantage by promoting their technology work more aggressively. JPMorgan has built one of the most robust research departments outside Silicon Valley, while Morgan Stanley highlights its OpenAI partnership to attract talent. Meanwhile, Capital One and Bank of America ranked among the top 15 global companies for AI patents in 2023—putting them in the same conversation as Microsoft and Amazon.
4. Modernize Work Culture and Flexibility
Rigid hierarchies and outdated processes can deter AI professionals. To compete with tech, firms must modernize.
- Offer hybrid or remote roles where possible.
- Support agile project management and use of open-source tools.
- Establish innovation hubs in AI talent hotspots
Firms like Morgan Stanley encourage employees to pitch AI ideas, while BNY Mellon invests in hackathons and has deployed an AI supercomputer to prove its innovation credentials. Hybrid and remote roles, agile work practices, and access to modern tools all help financial services compete with more flexible employers.
A culture of experimentation, backed by leadership commitment, signals that financial institutions are serious about innovation.
5. Leverage Specialized Partners and Technology
For firms with lean talent acquisition teams, external partners can extend reach and bandwidth.
- Engage recruitment process outsourcing (RPO) providers experienced in AI in finance hiring.
- Use AI-driven sourcing platforms to identify passive candidates.
- Consolidate vendors to reduce costs and complexity, supported by ROI metrics and compliance benchmarks.
Partnerships and technology not only expand candidate pools but also provide measurable efficiency gains.
AI may be redefining the tools of financial services, but people remain at the center of transformation. The challenge isn’t simply hiring more technologists, but building environments where AI professionals can thrive, innovate, and deliver measurable impact. Firms that strike that balance will not only secure scarce skills but also gain lasting advantages in efficiency, resilience, and client trust.
Partnering with a specialist is often the most effective way for financial services firms to access AI-ready talent at scale. At LevelUP, we bring deep expertise in financial services talent acquisition, helping organizations close critical skill gaps with tailored, flexible solutions. Our experience enables clients to connect with AI-ready professionals while aligning hiring strategies with long-term business goals. Learn more on our financial services solutions page.