{"id":60944,"date":"2025-10-08T09:55:21","date_gmt":"2025-10-08T09:55:21","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/60944\/"},"modified":"2025-10-08T09:55:21","modified_gmt":"2025-10-08T09:55:21","slug":"what-will-it-take-for-companies-to-capitalize-on-the-rise-of-ai","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/60944\/","title":{"rendered":"What Will It Take for Companies to Capitalize on the Rise of AI?"},"content":{"rendered":"

Artificial intelligence (AI)<\/a> has already begun to affect the business landscape, but its impact stands to widen significantly in the years ahead, Goldman Sachs leaders said at the Communacopia + Technology conference in San Francisco.<\/p>\n

Thus far, AI has only dramatically changed a few processes with easily assessed outcomes, such as computer coding and customer service. But according to Jung Min, global co-head of Technology, Media, and Telecommunications in Goldman Sachs Investment Banking, \u201cThere are hundreds of use cases that are just as verifiable as software development.\u201d<\/p>\n

Marco Argenti, the firm\u2019s chief information officer, analogizes one of the most popular ways \u2018reasoning\u2019 AIs are trained (reinforcement learning) to the game of \u201chot\u201d and \u201ccold,\u201d in which a searcher finds their way to a hidden object by getting told by a second person that they\u2019re getting nearer or farther from it. For processes with a clear, correct answer (such as computer coding, where the resulting program either works or doesn\u2019t work), AI models can be trained by a \u201chot-and-cold\u201d-style approach to find the right answer, and will learn to find the right answer more quickly the next time around. But some business processes are more nuanced, and there is not a single correct answer. \u201cIf you don\u2019t know where the thing is hidden until you find it, then how can you play hot and cold?\u201d Argenti asks.<\/p>\n

It is this challenge \u201cthat has slowed down adoption in the enterprise,\u201d Argenti says. \u201cBut what smart companies are doing is reprocessing their processes in order to make them verifiable by an AI.\u201d<\/p>\n

How are businesses using AI?<\/p>\n

Like Min, Argenti is confident that processes requiring more nuance will eventually be automated as well\u2014but he says in order for this to happen, humans will have to document their processes in a way that makes the steps understandable and the accuracy of the outputs provable.<\/p>\n

Inside Goldman Sachs, \u201cWe are looking at every single process in the firm right now and thinking about how AI could interact with this process,\u201d Argenti says. \u201cThe question is, how can a company model their processes in a way that can be verified by a machine?\u201d<\/p>\n

Min points out that in general, these processes are segmented across three separate parties: the first person performs the work, the second reviews the work, and the third person signs off on the work. \u201cYou\u2019re going to be able to create agents to do a lot of that,\u201d Min says.<\/p>\n

He adds that on the streets of San Francisco, self-driving cars have become a common sight. \u201cThere are many business processes that require about as much judgement as driving\u2014but unlike driving, they\u2019re not life and death; typically two people are going to review and sign off on the work.\u201d Min says. \u201cSo that\u2019s why I think that this workforce automation is going to happen much faster than people think.\u201d<\/p>\n

How will the economy be affected by AI?
\n<\/p>\n

Goldman Sachs Research Chief Economist Jan Hatzius says that the ability to replace low- and mid-value-added white-collar tasks with AI should eventually boost annual productivity growth by 1.5pp per year before considering offsets.<\/p>\n

At the same time, Hatzius says the labor picture could remain more resilient than some fear. \u201cOver the decade, you might get 6-7% of total employment displaced by AI,\u201d Hatzius says. \u201cBut since it happens over a long period of time, people will be absorbed into other industries \u2013 so the impact on the unemployment rate is going to be a lot smaller than that.\u201d<\/p>\n

He includes a key caveat, however. \u201cAs long as the economy is still growing and the market is still doing well, there is much less pressure on companies to rationalize. But if there were to be a downturn in the economy, then we would get much more adjustment, and therefore a bigger labor market impact,\u201d Hatzius says.<\/p>\n

He adds: \u201cThe really important point to keep in mind is that disruption tends not to be a linear process.\u201d

\n\u00a0<\/p>\n

This article is being provided for educational purposes only. The information contained in this article does not constitute a recommendation from any Goldman Sachs entity to the recipient, and Goldman Sachs is not providing any financial, economic, legal, investment, accounting, or tax advice through this article or to its recipient. Neither Goldman Sachs nor any of its affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of the statements or any information contained in this article and any liability therefore (including in respect of direct, indirect, or consequential loss or damage) is expressly disclaimed.<\/p>\n","protected":false},"excerpt":{"rendered":"Artificial intelligence (AI) has already begun to affect the business landscape, but its impact stands to widen significantly…\n","protected":false},"author":2,"featured_media":60945,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[345,343,344,85,46,125],"class_list":["post-60944","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-il","tag-israel","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/60944","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=60944"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/60944\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/60945"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=60944"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=60944"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=60944"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}