AI can draft 95% of IPO prospectus: Goldman Sachs CEO
What's the story
In a bold claim, Goldman Sachs CEO David Solomon has said that artificial intelligence (AI) can draft an IPO (initial public offering) prospectus. According to Financial Times, Solomon said that AI can accurately compile 95% of such a document. He noted that the final 5% is where human input is needed, and he believes that is the most crucial part.
Time-saving
AI's efficiency in IPO prospectus preparation
Solomon emphasized the efficiency of AI while delivering a speech at the Cisco AI Summit in California. He drew a comparison with the old school way of preparing an initial registration prospectus, or S1, which usually takes a six-person team two weeks to prepare. However, 95% of the work can now be done by AI and that too in minutes, Solomon said.
AI utilization
Goldman Sachs leverages AI for public filing documents
Goldman Sachs is already harnessing the power of AI. Solomon revealed that out of their 46,000 employees, 11,000 are engineers who are "using AI to help draft public filing documents." This is a clear indication of a major shift toward tech-driven processes in the investment banking sector.
Productivity boost
AI's potential to boost productivity in banking
Despite the difficulties in monetizing AI tech, industry experts expect big productivity gains in banks. Solomon echoed the same sentiment at a Reuters conference last December, saying machine learning and AI could make Goldman Sachs more productive, especially in coding. He said these tools could possibly increase their engineers' coding productivity by 20% or 30%.
AI integration
Banks are integrating AI into various functions
Major banks are increasingly integrating AI into their operations. They're using this technology for virtual assistants for clients, and introducing tools for employees to use in compliance, finance, HR, and risk management. They're also exploring its potential in developing products for wealth management. This trend further underscores the growing influence of AI in the banking sector.