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- Goldman Sachs CEO David Solomon said AI is similar to previous technology revolutions.
- The one big difference is the pace of change, he said in an interview on Tuesday.
- Last week, an internal memo showed Goldman is planning to cut jobs as part of an AI-focused overhaul.
Goldman Sachs CEO David Solomon doesn’t think AI is that different from previous job revolutions — it’s just a lot faster.
“Technology has been having an impact on head count and the way people work, what workers you have, for decades and decades and decades,” Solomon told CNBC’s “Squawk Box” in a Tuesday interview.
The one difference with the AI revolution is the pace of change, he said.
The speed at which AI is developing could lead to “a little bit more volatility, or an unsettled transition around certain job functions and things like that,” he added.
At Goldman, Solomon said it was likely that the “mix of engineers with this technology will again shift and change” in the near future.
Despite the potential for job disruption, the changes AI is introducing are giving Goldman “more capacity to invest” over the next three to five years and grow the business, Solomon said.
“At the end of the day, we have an incredibly flexible, nimble economy. We have a great ability to adapt and adjust. And yes, there will be job functions that shift and change, but I’m excited about it.”
In a firmwide internal memo sent last week and seen by Business Insider, Solomon and two other Goldman Sachs leaders announced plans for a “limited reduction in roles” and said the bank will restrict head count growth through the end of the year.
The workforce reduction is part of a major AI-driven overhaul of the bank’s OneGS program, its business and operations strategy.
In its place, Goldman introduced “OneGS 3.0.” The overhaul aims to integrate AI throughout the bank’s internal systems — from client onboarding to risk management — to cut complexity and enhance productivity.
“I can’t find a CEO that I’m talking to in any industry that is not focused on how they can reimagine and automate processes in the business to create operating efficiency and productivity, and that’s a really good thing for economic growth,” Solomon told Squawkbox on Tuesday.
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