Goldman Sachs CEO David Solomon says AI 'is something that people are going to have to think very strategically about'

MW Goldman Sachs CEO David Solomon says AI 'is something that people are going to have to think very strategically about'

By Steve Gelsi

The investment-banking exec expects AI capital-raising around power and energy to fuel data centers

'If you think about the amount of capital that's going to be necessary to implement [AI], the amount of energy and power that's going to be necessary to implement it, this is something that people are going to have to think very strategically about....So it's a big opportunity.' Goldman Sachs Chief Executive David Solomon on CNBC

Goldman Sachs Group Inc. Chief Executive David Solomon sees ample opportunity for the investment bank to profit from artificial intelligence, both through deal-making as well as in its internal operations.

"[AI] is something that our clients are talking actively about because the changes, the transformation of compute is accelerating at such a pace," Solomon said Monday in an interview with CNBC at the 2024 Milken Institute Global Conference.

"The implications on productivity and efficiency in business are going to be enormous," Solomon said.

The buildout of data centers to fuel AI remains in its early stages, he noted.

Goldman Sachs $(GS)$ has been using AI in aspects of its business for 20 years, according to Solomon, but the talk about its possibilities has been different this year.

"What's changed now is the power of the compute that's available, the speed and therefore your ability to apply it in different ways. ... And so I think there's an enormous productivity opportunity," he said.

Back 40 years ago when Solomon started in the banking business, it took six hours to compare two common stocks for potential investments, he said. Now, it takes an instant, he added.

"Productivity - the ability to take smart people, give them tools so they can do more, do more quickly, help our clients think about things in different ways - that's where our focus lies on this at the moment," Solomon said. "And, of course, there are efficiency opportunities, and we focus on those, too."

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-Steve Gelsi

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May 06, 2024 15:57 ET (19:57 GMT)

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