Buy-side jobs in Asia: Who's feeling the effects of AI the most?

Getting a job on the buy side has always been hard but AI has made it even harder for a lot of people. Some roles at hedge funds and private equity firms in Asia are faring better than they are elsewhere. June Tan, head of buy-side non-investment hiring at recruitment firm Principle Partners, spoke to us in advance of her AMA on The Bubble, our new anonymous forum, to discuss how attitudes towards hiring have changed as a result of technological advances.

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Anonymous headhunters have told us that, in Europe and the US, operations staff who are non-technical are under serious threat and get "replaced by automation on a weekly basis." Tan said that they're "not being let go" in Asia; "they still have value and are still here." AI has, however, created increased demand for "junior candidates with tech skills... not really native Python coders, but people who appreciate the language." Operations staff who are adept coders "are more popular in quant funds than traditional hedge funds."

If not operations, who is at risk? Tan said that finance divisions in hedge funds are "most exposed" to AI because they're "highly dependent on data reporting and will use these [AI] tools immediately." Another function at risk is compliance, which "needs to deal with similarly large sets of data." There are bright spots; Tan said quant funds are "trying to set up trading surveillance functions" and "need people to build the infrastructure rather than a project manager who can just interact with vendors."

When answering preliminary questions in the AMA, Tan said that she doesn't expect functions like compliance and operations to be replaced, but "the nature of the roles will certainly change." If you're unable to learn how to use AI tools and new technologies, "there is a real risk of becoming less relevant."

For private equity firms, the state of hiring is quite different. There are very few growth areas, and most of the hiring is "just musical chairs" as firms look to replace employees that leave. One of the brightest areas is investor relations. Tan said this is the "only vibrant function," and that PE firms are "hiring junior and mid-level guys to help them with fundraising." Tan said there's also a "slight increase in demand for internal audit professionals, largely driven by investors looking into companies and wanting to do a bit more due diligence."

Want to ask June something about buy-side or middle-office jobs in APAC? She'll be holding an AMA in The Bubble on the 6th of October; you can post your questions here.

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