AI is not taking banking jobs, Goldman exec says

Goldman Sachs CEO David Solomon believes AI will not lead to job losses for bankers. Instead, he sees it as a tool to boost productivity for existing employees. Solomon anticipates changes in how analysts and associates perform their tasks. He disagrees with the notion that an organization like Goldman Sachs will simply reduce its headcount due to AI. The company's OneGS 3.0 initiative aims to leverage AI to transform work processes. While a memo mentioned constraining headcount growth, Solomon expects overall employee numbers to increase. AI is expected to raise performance expectations, allowing for expansion and hiring of more high-value personnel. Other finance executives echo the sentiment that AI elevates job standards. The current youth unemployment rate above 10% fuels concerns about AI impacting entry-level positions. Many S&P 500 companies have already reduced workforces over the past decade, suggesting a trend towards leaner operations. Goldman Sachs' revenue per worker is substantial, and Solomon forecasts revenue growth outpacing employee growth. He dismisses the simple media narrative of AI replacing workers, emphasizing its role in making productive employees even more so. The financial industry is actively adopting AI, with major banks investing in the technology. AI adoption is poised to be a significant competitive advantage on Wall Street.