Omor Ibne Ehsan
5 min read
Quick Read
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Morgan Stanley’s investment banking revenue surged 58% to $2.44 billion as it co-built an OpenAI tool designed to automate junior analyst research and pitch book work.
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Every prior productivity wave in finance raised deal volume and compressed pricing, making more deals per banker the likelier outcome than permanently wider margins.
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Evercore fell 16% year to date despite record first-half results, signaling markets already discount AI-driven fee pressure on pure-play advisory firms.
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OpenAI has rolled out a version of ChatGPT built for financial services, developed with Morgan Stanley (NYSE:MS) and Evercore (NYSE:EVR). The target is the research and pitch book work that junior analysts grind through, and CNBC’s Kate Rooney reported the tool could pare down the 100-hour weeks those analysts work. The banks helped build the tool that automates their own analyst pipeline.
Nik Turley of OpenAI said, “We’re effectively teaching ChatGPT to research like an analyst and to back up its conclusions like an analyst as well.” OpenAI’s answer to what happens to junior bankers was that “You don’t need to do this by hand anymore. That didn’t mean the end of the analysts. They’re still going to be around. They will still have jobs. It will just make them more productive.” For investors, the question is whether that productivity shows up as bank margin or gets competed away.
What The Tool Does And Why Banks Wanted It
Research, document work, and pitch book assembly are labor-intensive and standardized, making them obvious targets for a finance-tuned language model. The harder engineering problem is ensuring citations trail conclusions, since a memo without sources won’t reach a managing director’s client.
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The banks wanted this because their advisory engines are running hot. Morgan Stanley’s investment banking revenue reached $2.44 billion in the second quarter, up 58% year over year, with advisory alone at $798 million. Evercore ran 296 fee-paying advisory engagements in the quarter, with 132 fees of $1 million or more. Automating standardized work lets senior bankers cover more clients. Chief executive Ted Pick told analysts AI was one of two defining themes of 2026 and that its “potential for enhanced efficiencies and productivity is only beginning to be realized” (Q2 2026 8-K).
