Goldman Sachs Group, Inc (NYSE: GS) is actively integrating generative artificial intelligence (AI) into its operations, focusing on a dozen projects that enhance business efficiency.
These initiatives include the ability to interpret English-language commands for coding and the automated generation of documentation, as Reuters cites George Lee, co-head of Goldman's innovation office.
However, these AI projects are not yet in direct contact with clients.
Lee, who also co-leads Goldman's new global institute advising on geopolitics, technology, and markets, emphasizes a cautious and deliberate approach to adopting AI.
The company is balancing leveraging AI's benefits and addressing the complexities it introduces.
Banks and other firms are exploring how generative AI can provide competitive advantages while considering managing associated risks.
For instance, Morgan Stanley (NYSE: MS) has introduced an AI bot developed with OpenAI to assist financial advisors with research and documentation.
Similarly, JP Morgan Chase & Co (NYSE: JPM) creates AI-driven investment selection software.
Lee highlighted the excitement surrounding the technology's capabilities but insisted on the necessity of human oversight to ensure appropriate intervention when needed.
With AI's ability to respond to financial inquiries, professionals in advisory roles are challenged to provide additional value to justify their fees.
Price Action: GS shares traded higher by 1.24% at $324.75 on the last check Friday.