Goldman Sachs CEO David Solomon said the company has launched an initiative dubbed One Goldman Sachs 3.0, which will leverage AI to create a centralized operating model that's more efficient and drive growth.
Speaking on Goldman Sachs fiscal third quarter results, Solomon said:
"This is a multiyear effort that we will build over time, and we plan to measure our progress across 6 goals: enhancing client experience, improving profitability, driving productivity and efficiency, strengthening resilience and capacity to scale, enriching the employee experience and bolstering risk management."
To start the effort, Solomon said the company is looking at a handful of "front-to-back work streams that can significantly benefit from AI-driven process reengineering and will help inform our longer-term approach."
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Use case priorities will revolve around sales enablement and client onboarding that directly impact the client experience, lending processes, regulatory reporting and vendor management.
Solomon said the company will provide a deeper update in January.
CFO Denis Coleman said the company has a nice tailwind with a rebound in IPOs and a better regulatory environment. "We are focused on efficiency and leveraging AI to meaningfully transform the firm. And this is all in the context of an improving regulatory backdrop, which should allow us to be on offense as we deploy resources and service of our clients," said Coleman.
Solomon said Goldman Sachs would rather take on more AI transformation efforts as it is operating from a position of strength. "I'm talking to CEOs all over the world and businesses are focused on this because the technology actually allows you to take a fresh look front to back at certain operating processes and really reimagine," said Solomon. "Obviously, the firm is performing. The firm is growing. We feel very good about the execution, but we see this as an opportunity to use technology to automate, drive scale, create efficiency and actually give us the capacity to invest more in the growth of our business."
According to Solomon, AI transformation from a position of strength could become a common refrain from enterprises. He said:
"I think you're going to hear this from lots of companies and lots of industries that people are very focused on taking advantage of this acceleration in technology to really allow automation, efficiency and therefore, investment. This is one of the reasons why we're optimistic about the forward, the productivity gains in the economy from enterprises are going to be very meaningful over the next few years, and that creates a good tailwind that will balance other macro factors that may or may not come into play."
