For anyone with concerns that artificial intelligence (AI) may take your job, there may be a disturbing development afoot at banking giant Goldman Sachs (GS). The bank is bringing out a new AI-powered assistant for its workers, and oddly enough, investors seem just as nervous. Goldman Sachs shares are down fractionally in Tuesday morning’s trading.
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A new report from CNBC notes that Goldman Sachs’ new generative AI assistant will not only hit bankers’ desks, but also traders and asset managers can get in on it. The program, known in an oddly on-the-nose fashion as GS AI, will eventually be part of every “knowledge worker”’s toolbox by the end of the year, the report noted.
GS AI will be able to handle proofreading tasks, as well as summary generation, and even language translation for coding. This is something of a step up from other generative AI systems, which were often called upon to handle incoming queries or even write emails outright. But in a move that may leave some concerned—particularly those who remember what just happened at Meta Platforms (META)—Goldman Sachs looks for these tools to handle “multi-step tasks with little human intervention” soon.
More Cradle Robbing
Meanwhile, Goldman Sachs is looking to bump up its next generation of young leaders, a move we actually saw imitated with Loblaw (TSE:L) in Canada earlier today. A Wall Street Journal report notes that Goldman is bumping up the size of its management committee, and even offering insight on who the next partners will be.
Goldman has apparently been trying to let its younger generation of leaders know for the better part of a year now that they are indeed still “climbing the ranks,” the report noted. This may have been a tough sell, given that the bank only recently announced that current CEO David Solomon would be in place for at least the next five years, all but guaranteeing stagnation below him. But with an expanded management committee, there may be more room near the top than some expected.
Is Goldman Sachs a Buy, Sell or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GS stock based on 12 Buys and four Holds assigned in the past three months, as indicated by the graphic below. After a 65.48% rally in its share price over the past year, the average GS price target of $663.20 per share implies 6.35% upside potential.
