UBS has introduced a new requirement for recruiting recent graduates and interns this year: proof of AI skills.

Artificial intelligence is reshaping hiring standards at Wall Street and major European banks.

According to the Financial Times, UBS has made AI skills a clear requirement for hiring junior investment bankers, becoming one of the first major financial institutions to include AI literacy in their formal hiring criteria.

According to sources familiar with the matter, this new requirement will apply to recent graduates and interns joining its global banking and markets division in 2027. Candidates must demonstrate their ability to use AI to "improve work outcomes and efficiency." This move signifies that AI skills are increasingly penetrating traditional banking roles from technology and data positions.

This shift comes against the backdrop of escalating warnings of massive layoffs in the banking sector. Morgan Stanley analysts recently predicted that over 200,000 jobs in the European banking industry will be at risk over the next five years as major banks accelerate their adoption of AI and close more branches.

AI literacy is a key requirement for recruitment.

UBS's new regulations will be implemented alongside traditional recruitment criteria, which include requirements such as a 2.1 grade in undergraduate studies (UK degree classification standard). Sources indicate that questions related to AI "fluency" will be incorporated into the interview process for recent graduates and interns, assessing candidates' practical experience in using the technology.

UBS stated, "We continuously review our hiring criteria to ensure they reflect the skills we require. As AI fundamentally reshapes the financial services industry, AI skills and experience have become a crucial component of future career success and are therefore relevant hiring considerations. AI literacy complements, rather than replaces, academic, analytical, and interpersonal skills, which remain core considerations in our talent recruitment."

Sources also revealed that the AI skills requirement applies to other newly posted positions at the bank.

Industry peers followed suit, and an industry trend began to emerge.

UBS is not an isolated case. According to company documents, Spain's Santander has also explicitly sought "senior AI users" in some of its corporate and investment banking graduate programs.

This trend reflects a deeper structural shift in the banking industry—AI tools are being increasingly used to perform routine tasks historically done by junior staff, including financial analysis, research report writing, and even the creation of client presentation materials. UBS itself is also experimenting with this technology in novel ways, including creating digital avatars for analysts to present to clients via video, a move the bank says will allow employees to focus on more productive work.

Despite rising demand for AI skills, some bank executives have expressed caution regarding over-reliance on technology. Conor Hillery, co-head of Europe, the Middle East, and Africa at JPMorgan Chase, stated at the Financial Times Global Banking Summit last December that the banking industry needs to be "very careful" to ensure employees don't "lose their understanding of fundamental knowledge and basic principles." He added that JPMorgan Chase is striving to strike a balance between leveraging AI to accelerate basic tasks and training junior staff in traditional core banking skills.

UBS's statement aligns with this stance—the bank emphasizes that AI literacy is a "supplement rather than a replacement" for existing competency requirements, and academic ability, analytical skills, and interpersonal communication skills remain core dimensions of recruitment. However, with AI requirements now formally incorporated into recruitment criteria, the competitive advantage for recent graduates who haven't yet systematically engaged with this technology has subtly shifted.

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