Goldman Sachs CEO David Solomon recently stated that artificial intelligence (AI) doesn't mean he needs fewer employees, but better employees. This is Solomon's view on the impact of AI on banks. The industry has made a clear statement regarding employment, namely that AI only screens "high-value talent" and will not cause bankers to lose their jobs.
In a recent interview, he pointed out, "We need more high-value talent. We have the capacity to hire more high-value talent to expand our footprint and continue to grow and expand our business."
Solomon made these remarks amid growing concerns that AI will take away jobs. This anxiety has been amplified by previous reports that OpenAI has hired over 100 former investment bankers to develop models that could replace junior finance employees.
Solomon points out that this technology will inevitably change the way analysts, associates, and investment bankers work, making productive people more efficient. He even states that he believes this technology will increase a company's headcount over the next decade.
“If you think that institutions like Goldman Sachs will reduce their staff because of AI, you’re wrong. That’s not the case,” he said.
However, it's worth noting that earlier this month, Goldman Sachs introduced OneGS 3.0 in a memo to employees, stating that it would implement "limited layoffs" as part of an AI- driven transformation. The memo also stated that the bank would limit headcount growth until the end of the year.
However, Solomon emphasized that the core value of AI is to improve efficiency rather than lay off employees: "Giving AI tools to smart people will make them more efficient. The way analysts, partners, and investment bankers work will change, but with increased productivity, we can expand our business and thus need more high-value talent."
A Goldman Sachs spokesperson previously stated that the company expects net headcount growth by the end of this year. The company's third-quarter earnings report showed that its global workforce grew by 5%, reaching approximately 48,000.
Solomon also stated at a meeting in early October that Goldman Sachs has invested $6 billion in technology this year, and he expects Goldman Sachs to eventually become a "much larger company."
He stated, "Obviously, in some areas, we will see significant staff reductions—but I hope to have more staff to serve our clients." Goldman Sachs employs approximately 12,000 technical staff, and Solomon indicated he anticipates artificial intelligence will significantly impact software development. It has the most direct impact.
Artificial intelligence is transforming the way we work on Wall Street, with banks, private equity firms, hedge funds, and asset management companies all investing heavily in the technology. Salomon's view is not unique. Anthropic's Chief Revenue Officer, Kate Jensen, stated in July that AI will improve team performance expectations, rather than simply replacing human labor.
(Article source: CLS)
