Goldman Sachs introduces an AI assistant for its staff as the trend of artificial intelligence continues to grow on Wall Street.

• Goldman Sachs is introducing a generative AI assistant to its bankers, traders, and asset managers, marking the first step in the development of a program that will eventually exhibit the characteristics of a seasoned Goldman employee, as stated by Chief Information Officer Marco Argenti.
• The bank has launched a program called GS AI assistant for approximately 10,000 employees, with the aim of providing it to all knowledge workers by the end of the year, according to Argenti's exclusive interview with CNBC.
• Argenti stated that the AI assistant feels like talking to another GS employee,

Goldman Sachs is introducing a generative AI assistant to its bankers, traders, and asset managers, marking the first stage in the development of a program that will eventually exhibit the characteristics of a seasoned Goldman employee, as stated by Chief Information Officer Marco Argenti.

The bank has launched a program called GS AI assistant for about 10,000 employees, with the aim of providing it to all knowledge workers by the end of the year. The initial purpose of the program is to assist with tasks such as summarizing emails, proofreading, and translating code from one language to another.

"Consider the various tasks you may need to accomplish for various professions, which are now readily available at your fingertips."

The release of generative AI tools by Goldman, along with other top investment banks, marks a significant development in the use of AI in the financial industry since the popularity of ChatGPT two years ago.

Large language models have enabled Wall Street to adopt generative artificial intelligence at a faster rate than any other recent disruptive technology, according to experts, due to their ability to mimic aspects of human cognition.

Future AI versions are expected to possess "agentic" abilities, allowing them to execute complex tasks with minimal human intervention.

In a conversation with CNBC, Argenti, who joined Goldman in 2019, frequently compared the AI program to a new employee who will adopt the company's culture over time.

The bank is exploring AI models from various companies, including Goldman data-fed models from OpenAI's ChatGPT, Gemini, and Llama, as well as models from Anthropic, Mistral, and Cohere, said Argenti.

Argenti stated that the AI assistant feels like talking to another GS employee,

Learning the Goldman Way

"As we progress, the second step is when you're starting to exhibit agentic behavior, which is 'I am completing a task on behalf of a Goldman employee and need to take a set of steps,'" he said. "That's where the model will start to behave like a Goldman employee, not just talk like one."

To maintain their data security and create AI platforms that reflect their workforce, companies have prohibited employees from using ChatGPT for work and instead developed their own platforms.

It is crucial for the AI to embody the firm's unique identity, values, knowledge, and thought process, according to Argenti.

The AI will learn to double-check its work with multiple data sources or use specific algorithms, just as an experienced Goldman employee would.

As AI models continue to evolve, blurring the lines between human and machine thinking, Argenti is most excited about what lies ahead in the next three to five years.

The AI model at Goldman would need to "reason more and adopt a Goldman employee's way of thinking," according to him.

Instead of receiving a run book, the AI would generate detailed plans as if an experienced Goldman employee were doing it.

Disruption risk

The possibility of that future, along with Wall Street's workers assisting in training a technology that could replace certain roles, while also enhancing others and creating new ones, may trigger a new wave of anxiety among employees.

In the near future, major investment banks, including Goldman, are expected to provide generative AI tools to all of their employees.

JPMorgan has more than 200,000 employees with access to in-house generative AI tools, while Morgan Stanley had around 40,000 employees with access to it as of late last year, according to sources.

The emergence of generative AI has the potential to disrupt the finance and technology industries, with companies able to generate billions of dollars in additional profits. Meta CEO Mark Zuckerberg has revealed that its AI will be able to write code as well as mid-level software engineers this year.

As many as 200,000 jobs at global investment banks could be cut in the next three to five years due to AI implementation, according to a report from Bloomberg's research arm. The report, which surveyed tech executives at major banks, identified support and operations roles, commonly referred to as the back and middle office, as being most at risk.

At Goldman, the official stance is that AI will enhance employees' abilities to perform more tasks, not necessarily lead to a decrease in the number of human employees.

The significance of having an exceptional human workforce will be intensified, according to Argenti.

"People are the key to the evolution and empowerment of AI, as they will be the ones to educate and take action."