In the age of AI, relationships are the moat

Week in, week out, I get asked the question of AI's impact on the job market. Some people think all AI is, is a hype cycle for the mega cap tech companies to shift money between their balance sheets and inflate valuations, whilst others view this as the number one technical invention of our generation, and in some cases, in history full stop.

Now, both are extremist views, but when pushed for an answer, I strongly favour the latter contention. The complexities of which are greater than those laid out above, but nevertheless, it is representative of the huge technological leap we have seen take place over the past decade (and more visibly over the last five years). With that being said, there has been a demonstrable downturn in the state of the graduate job market, and the overall job market. Albeit, this is coupled with fast-moving market dynamics, and to name a few: the geopolitical instability, the mass expansion of the middle management layer over the past two to three decades, and the lack of financial scrupulousness owed to these corporations.

Nevertheless, the question prevails. How does one adapt to these shifting dynamics, and interestingly, how does one protect their position within a company with such a threat of 'AI replacing you'? The answer, in my humble opinion, is obvious, namely: relationships.

The power of relationships has grown tenfold over the last few years. Now, as a past legal student, my natural question becomes, well, how does one define relationships?

Take, for example, a non-executive director for a fast-growing start-up; let's call him Stuart. He has previously exited three firms and now acts as a NED for a number of start-ups. If I receive advice from Stuart on a challenge surrounding an M&A merger, and the same advice from an LLM, who am I going to trust more? Personally, Stuart. He has the previous experience, and even if the LLM has a better answer, I'm going to be inclined to follow the person who has learnt through blue shins.

Similarly, imagine someone who manages money at an investment management firm. Even with the rise of AI and tooling, although I may expect them to innovate internally and use these tools, I'm not going to end the relationship with the person who manages my money and has built up that relationship over years and years.

So, what does this mean moving forward? It means those who conduct manual data transposition, back office management, administration, KYC, AML: your jobs are at risk.

Those who manage a relationship with a client: your roles are safe. And therefore, how does one protect their job security in the world of AI?

They develop relationships, maintain those relationships, and deliver relentless value. Because even where AI can replace you, if you have done the above, it will not.