How AI is helping one doctor treat cancer<\/a><\/p>\nShe sees one big risk with such AI programmes on Wall Street: that bankers become too dependent on them.<\/p>\n
\u201cThe most important limitation of AI tools is probably the risk of over-reliance,\u201d she says. \u201cWe have to acknowledge [AI] is a tool and not the source of truth\u2009.\u2009.\u2009.\u2009It\u2019s a way for us to do our job better, but we need to continue to focus on individual accountability and using it as a way to enhance what we\u2019re doing. Not to replace what we\u2019re doing.\u201d<\/p>\n
Her concerns point to both the promise and uncertainty of how deeply AI tools will be interwoven into white-collar jobs such as banking. They offer enormous efficiency gains, such as drafting documents for an initial public offering in minutes that previously would have taken months, or quickly sketching out a multiyear investment plan. But they can lack the personal nuance that is crucial in a demanding client service business such as banking, which commands multimillion-dollar fees.\u00a0<\/p>\n
As with many sectors, there are already predictions they will eliminate jobs: research from Bloomberg Intelligence this year estimated global banks would cut as many as 200,000 roles in the next three to five years as a result of AI automation.<\/p>\n
Tomasz Noetzel, author of the report, says views were mixed: some survey respondents estimated their bank would lose more than 10 per cent of workers, others said they would increase headcount by the same amount. \u201cIt might be about eliminating some jobs, such as in back office, but workers could be upskilled and deployed in different roles.\u201d <\/p>\n
Regulation \u2014 including overall accountability for decisions made by machines \u2014 is also influencing the rate of AI adoption. Banks \u201care working with a vast amount of data \u2014 that\u2019s why AI is so useful\u201d, Noetzel adds. \u201cBut some of this data could be leaked, or hacked, so this is both a governance risk and the regulator compliance risk.\u201d<\/p>\n
Blum\u2019s view is that the technology enables Goldman to \u201cdo more with the same people\u201d.<\/p>\n
\u201cWe\u2019re still in the early stages of incorporating the technology into our day-to-day tasks, and I am finding new ways to use it every day. It can be hard to quantify since it isn\u2019t just about saving time but also about enhancing the work. But at this point, I\u2019d say it saves me a few hours per week.\u201d <\/p>\n
So far she says AI has helped her do her job in four key ways: getting quick answers to complex technical questions; summarising the key points within dense documents; editing and polishing her own written work; and brainstorming.\u00a0Time saved can be spent with colleagues and clients.<\/p>\n
\u201cI can get the content or the ideas that I want on paper and then ask the AI tool to do the finishing work, which is efficient for me and then lets me get on to the next topic or spend more time interacting with our people.\u201d<\/p>\n
The AI tool might help deliver a foundation, but then I need to overlay the unique things that are happening in any given situation<\/p>\n
One recent example was when she uploaded an in-the-weeds presentation about Goldman\u2019s structured products business. She tasked the AI assistant with writing a three-minute introduction for an audience with varying degrees of familiarity with how the business worked. \u201cIt came back identifying six key points to address, with proposed comments and timing, which I used as a starting point.\u201d<\/p>\n
Goldman is also using a new AI translation tool that allows employees to solve the problem of translating complex financial language quickly and get information to clients in their primary language.\u00a0<\/p>\n
Blum recognises the limitations of the technology and is keen to emphasise that ultimately an employee will be accountable for any decision.\u00a0<\/p>\n
\u201cA lot of the time the way that I or anyone approaches a problem is very much informed by personal experiences and the knowledge base that has been built over time.<\/p>\n
\u201cThe AI tool might help deliver a foundation, but then I need to overlay the unique things that are happening in any given situation so I can make sure I get the best answer possible. The tool might give an OK answer, it might even give a good answer,\u201d Blum says.<\/p>\n
\u201cBut now I\u2019ve got to decide, is that the right answer for my client? Is it missing any perspective? Are there things that should be included\u2009.\u2009.\u2009.\u2009that the tool would not be able to think about?\u201d<\/p>\n
One concern in banking and other industries is what these tools will do to hiring practices, particularly for more junior roles. Privately, some bank executives talk about AI raising the bar for new hiring, especially when it comes to filling vacant jobs in an industry where attrition is typically a mid-to-high single digit of a company\u2019s workforce. One senior executive estimated annual cost savings for banks could be in the 3-4 per cent range.\u00a0<\/p>\n
Younger employees who have used AI tools such as chatbot Rogo<\/a>, say this technology will mean the traditional work handed out to junior investment bankers, such as slide deck preparation and financial modelling, will be altered for good.<\/p>\nBlum sides with the stance that AI will help employees to be more productive and the work to be more fulfilling since grunt tasks will be automated.\u00a0<\/p>\n
She believes the technology will \u201creally improve the quality of the work that our junior people are doing. They\u2019re going to get to do high-impact work while they\u2019re learning from the AI assistant or while the AI assistant is doing other things to help them.\u201d<\/p>\n
Because of that, she has one piece of advice for young bankers:\u00a0\u201cI know if I was an intern or an analyst, I would be a top user of the assistant tool right now.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"When Goldman Sachs partner Kerry Blum was wrestling with how to communicate a new project to staff, she…\n","protected":false},"author":2,"featured_media":155398,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[182,181,507,74],"class_list":{"0":"post-155397","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/155397","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=155397"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/155397\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/155398"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=155397"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=155397"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=155397"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}