Goldman Sachs said Monday it will roll out an artificial intelligence tool that could be used to take over tasks traditionally done by junior bankers — fueling ongoing fears the technology could soon eliminate entry-level jobs.
AI will be used to generate efficiency gains in the Wall Street giant’s Investment Banking and Wealth Management divisions by helping employees with everyday tasks, according to an internal memo circulated to staffers viewed by The Post.
“Today marks an important moment in our AI journey as we are excited to announce the firmwide launch of the GS AI Assistant – the first generative AI-powered tool to reach this scale,” Goldman Sachs CIO Marco Argenti said in the company-wide missive.
The David Solomon-led financial powerhouse had previously rolled out the tech to about 10,000 of its estimated 46,500 global employees.
“Thousands of our people are already using the GS AI Assistant, and I hope all of you will start exploring how the tool can positively impact your daily tasks and boost productivity, from summarizing complex documents. and drafting initial content to performing data analysis,” Argenti said in the memo.
A Goldman spokesperson declined to say whether the AI adoption will augur future job cuts.
“Our people are our most valuable asset. We view AI powered tools as helping them be more efficient and enabling them to serve our clients even better,” Nick Carcaterra told The Post.
Sources familiar with Goldman’s move said it would allow the bank’s employees to focus on higher-value tasks – and doesn’t necessarily portend that supercomputers were about to mount a hostile takeover of the industry.
“It is very unlikely that you are suddenly going to have these tools that can just independently do this completely on their own, and therefore negate the need for a junior banker,” said one staffer with another top Wall Street investment firm.
“There remains a level of skepticism towards it.”
One money-spinning Goldman trader was particularly dismissive of the idea that AI would soon be coming for his job — and his annual bonus.
“Lose my job to AI? I’m unfireable,” said the banker, who had raked in a massive six-figure payout earlier this year as investors reorganized their portfolio amid fears of Donald Trump’s threats to slap tariffs on imported goods.
Nonetheless, a January report by Bloomberg Intelligence predicted that up to 200,000 Wall Street jobs could be cut within five years thanks to cutting-edge technology that can perform tasks currently performed by humans.
The study said major global banks would use AI to “streamline their operations.”
It added back- and middle-office roles that perform routine items such as data entry and customer service are under the most threat.
The report went on to warn that the technology could be used to take on responsibilities typically assigned to entry-level junior bankers, such as drafting financial models and analyzing data for megabucks M&A deals.
Goldman’s announcement comes just weeks after onetime AI skeptic and hedge fund titan Cliff Asness admitted to the Financial Times that his firm AQR Capital Management had “surrendered to the machines.”
JPMorgan has a similar tool to one being rolled out by Goldman called LLMSuite that helps its bankers summarize meetings and draft reports.
Morgan Stanley gives financial advisors the possibility to use an AI-powered chatbot known as Debrief.
Meanwhile, Jane Fraser-led Citi has AI tools such as Citi Assist, which searches internal bank policies and procedures, as well as Citi Stylus, which helps with document summarizing and comparisons.
“Ultimately there is an output,” another analyst who works on M&A deals told The Post.
“It is on me and many others to interpret that and investigate a little bit further and ask: what’s the context? (AI) can help cut down on some of that manual effort, but there is still some interpretation that is needed.”
Credit: Source link
