Goldman Sachs is adopting a measured approach to the use of AI across the firm, reflecting the evolving nature of the technology and the uncertainties around best case outcomes.
Currently, half of the 46,000 employees at Goldman Sachs now have access to artificial intelligence.
“We have the entire organization that needs to somehow re-tune and re-tool itself for AI,” chief information officer Marco Argenti told Fortune magazine. “But, I think we’ve been very, very, very intentional with regards to driving people change management.”
For example, the firm is currently experimenting with agentic AI, which has yet to be deployed across the firm, despite the apparent benefits in the automation of key tasks, such as compliance checks or the processing of customer transactions. However, recent studies and poor experiences in rushed projects have proved that the AI agents need specific training and quality data to prevent hallucinations and errors in the results they produce. Goldman says it is still assessing what additional controls it needs to effectively and safely use agentic AI.
Roughly one out of every four Goldman Sachs employees is an engineer, and this group was the first Argenti targeted when deploying generative AI tools. Argenti gave those workers access to AI coding assistant tools, including GitHub Copilot and Gemini Code Assist. Goldman has conducted competitions inspired by reality TV show Shark Tank so that developers could share their most creative uses of AI.
Argenti told Fortune that he measures the return on investment from these copilot tools in a few ways, including frequency of use and the acceptance rate of code generated by GitHub and similar tools.
Broader use of generative AI within the company came with the launch of GS AI Assistant, which rolled out last year and has expanded to 10,000 employees including bankers, traders, and asset managers. This tool, which Goldman anticipates will be available to nearly all employees by the end of 2025, can summarize documents, draft emails, analyze data, and create personalized content.
Recent research from Vlerick Business School, supports Goldman's cautious approach, challenging common misconceptions that AI can fully replace humans in budgeting, instead highlighting the need for a balanced approach.
The study sought to understand the role AI plays in corporate budgeting and how it compares to human managers in both the effectiveness and strategic alignment of financial decision-making.
The researchers focused on two key aspects of budgeting: tactical and strategic. Tactical budgeting involves data-driven decisions that optimise short-term performance. Strategic budgeting is more in-depth and focused on the long term.
To examine this, the researchers conducted a management simulation in which seasoned managers were asked to allocate budgets for a hypothetical automotive parts manufacturer. Their decisions were compared to those made by an AI algorithm using the same data.
The study found that AI consistently outperformed humans in optimising budget allocations when the strategic framework was clearly defined. But when key performance indicators (KPIs) were misaligned with strategic goals, AI struggled to produce the most effective results.
The findings suggest that AI can replace humans in tactical budgeting, where its speed and precision lead to more efficient outcomes. However, human oversight is essential in strategic planning to ensure that short-term financial decisions align with broader business objectives.
“As AI continues to evolve, companies that leverage its strengths in tactical budgeting while maintaining human oversight in strategic planning will gain a competitive edge,” say the report's authors. “The key is knowing where AI should lead and where human intuition remains indispensable.”
Data is a key component of Goldman's AI strategy, which Argenti calls a three-leg stool that should also represent the AI technology itself and the people who use it. Good quality data is needed for the right output from LLMs, but changing people’s behavior is equally important.
“It’s about amplifying capabilities and in the hands of the best people, I think you’re going to get the best results,” says Argenti.