In a bold statement, Goldman Sachs' CEO David Solomon said that artificial intelligence (AI) can write 95 per cent of an IPO prospectus accurately and people are required for the last 5 per cent of the report — the only part that “matters”, according to the United States investment banking major's chief, the Financial Times reported.
Speaking at the Cisco AI Summit in California, Solomon shared his thoughts on the impact of AI on his company's business and clients, the report said.
Speaking about the task of drafting an initial registration prospectus for an initial public offering (IPO), Solomon said the document — known as S1 — took a six-person team two weeks to prepare, but AI can complete this task “in minutes”, according to the publication.
“The work of drafting an S1 might have taken a six-person team two weeks to complete, but it can now be 95 per cent done by AI in minutes. The last 5 per cent now matters because the rest is now a commodity,” he said.
Goldman Sachs has 11,000 engineers among its 46,000 employees, who Solomon said are “using AI to help draft public filing documents”, the FT report added.
Earlier in December, Reuters cited industry experts to note that while AI is expected to show big gains in productivity at banks, it has so far been harder to make money from the technology.
Also speaking at the Reuters Conference in December, Solomon noted that machine learning and AI could improve productivity for the bank, in areas such as coding.
“We have 11,000 engineers. We do an enormous amount of coding. If we can increase with these tools their coding productivity by 20 or 30 per cent, it's a huge tailwind for us,” he had stated.
The report added that major banks have been applying AI to virtual assistants for clients and introduced tools for employees to use for compliance, finance, HR, and risk, while working on developing products for wealth management.
(With inputs from Reuters)
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