Goldman Sachs Integrates AI for 95% IPO Prospectus Drafting

Goldman Sachs CEO David Solomon recently highlighted the transformative impact of artificial intelligence (AI) on investment banking, particularly in drafting IPO prospectuses. At the Cisco AI Summit, he explained that a process which once required a six-person team two weeks can now be completed by AI in just minutes, with the technology producing 95% of the document. Solomon emphasized the importance of the remaining 5%, which requires human expertise, stating that this portion is crucial as the rest has become a commodity. He noted that Goldman Sachs is leveraging AI to improve productivity across various functions, including coding, compliance, and client services, with a workforce of 11,000 engineers. Despite the productivity enhancements, Solomon acknowledged challenges in monetizing AI advancements within the firm. Overall, the integration of AI is part of a broader trend among major banks seeking to increase efficiency and streamline operations.