This paper studies how artificial intelligence (AI) affects the finance labor market when
humans and AI perform different tasks in investment projects, and workers earn agency
rents that grow with project size. We identify two key effects of AI improvement: A freeriding
effect raises worker rents by increasing the probability of successful investment
when the worker shirks; A capital reallocation effect shifts investment toward workers
with higher or lower rents, depending on which tasks AI improves. Contrary to standard
predictions, AI can raise both worker rents and labor demand. We derive implications
for capital allocation, labor demand, compensation, and welfare.