Episode summary
Goldman Sachs Chairman and CEO David Solomon on AI: Implementation, Accountability, and Jobs
Exchanges (Goldman Sachs)
· · 17 min · Guests: David Solomon
Summary
David Solomon argues that AI should be governed with “rules of the road,” not treated as a binary choice between unchecked innovation and heavy-handed restriction. He says governments should set the framework, AI model builders should be accountable for what they create, and companies deploying AI should also own the risks and outcomes inside their businesses. Goldman Sachs, he says, is a useful model because its trading platforms have long operated with human accountability attached.
Solomon also says financial firms can teach the AI industry a lot about risk management, testing, audit practices, and control infrastructure. In his view, the lesson from past technology waves and from the post-financial-crisis era is that societies can capture the benefits of new tools while managing the downside if they build trust and accountability into deployment.
On jobs, Solomon is more optimistic than fearful. He expects disruption and automation, but he also expects new businesses and jobs to be created, especially as AI makes knowledge workers more productive and helps small businesses lower costs and grow. Goldman is applying AI to automate processes and improve client experience, while the firm’s new $500 million Small Business AI Institute will add AI training and capital for entrepreneurs. He is not worried about the technology’s durability, though he expects the AI build-out and markets to be volatile along the way.
Key takeaways
- Solomon says AI policy should be nuanced, with governments, model builders, and deploying companies all accountable for outcomes.
- He argues financial institutions have built the risk, audit, and testing muscle that AI deployers will need.
- Solomon is more in the camp that sees AI as a job creator over time, even though it will disrupt and automate work.
- He says young analysts should embrace AI as a productivity tool rather than fear it.
- Goldman’s $500 million Small Business AI Institute is meant to give small firms AI training, efficiency tools, and more access to capital.
- Solomon thinks the AI build-out will be a long journey, not a straight line, with market volatility and periodic recalibration.
Notable quotes
“winning in the AI era is not a choice between innovation and safety”
“There has to ultimately be a structure of accountability around the deployment of this technology into society”
“I think it's a much more nuanced discussion. I think we absolutely can spur great innovation with this technology, but we have to have rules of the road”
“I'm more in the second camp than the first camp with some caveats”
How the episode opens
How do we get the societal benefits of AI while guarding against its risks? In a recent op-ed, today's guest argues that winning in the AI era is not a choice between innovation and safety. I'm Allison Nathan, and this is Goldman Sachs Exchanges.
Joining me is David Solomon, Chairman and CEO of Goldman Sachs. We'll talk about how AI can be advanced with discipline, what AI means for jobs, how businesses are using it, and who should set the rules. We'll also discuss the firm's new commitment to help small businesses adopt AI.
David, thanks for joining us. Thank you. Thanks for having me.
It's great to have you here in the studio. You and I usually have a conversation at the start of the year to talk about what lies ahead, but we're sitting down today again to focus on the topic that seems to be on everyone's mind: AI. So, in your op-ed that was published last Friday, you argued that the AI debate is too focused on a choice between moving fast without guardrails or heavy-handed restrictions that could slow progress.
So, what's that debate missing? Well, I think the debate is missing nuance. Most things that are complex and important aren't so binary.
And so, the narrative that's developed that if for some reason we don't let the innovation be unleashed and run at whatever speed with no guardrails, no protections, no risk and controls, we somehow inhibit our competitive position, so therefore, the choice is to regulate, slow down, and stop and weaken our competitive position. I just don't think it's a binary choice. I think it's a much more nuanced discussion.
I think we absolutely can spur great innovation with this technology, but we have to have rules of the road. There have to be guardrails.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- ai governance
- risk management
- job displacement vs creation
- financial services automation
- small business ai adoption
Companies and tickers mentioned
- GS
- Goldman Sachs
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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Exchanges (Goldman Sachs), this episode and its artwork belong to Goldman Sachs. Octagon is not affiliated with the show; this page is an independent summary.
