Goldman Sachs Makes a Huge AI Bet
Goldman Sachs has just launched its generative AI assistant across the entire firm, making it available to all employees in what the bank calls a major milestone in its technology strategy.
The move follows more than a year of internal development and testing that involved over 10,000 employees piloting the tool. The GS AI Assistant is a conversational AI interface that allows employees to safely interact with large language models like GPT and Gemini, firewalled within Goldman's own secure compliance framework.
'We have been developing AI and machine learning applications and infrastructure for a number of years, including several generative AI-powered tools that have been transforming the way we work,' said Chief Information Officer Marco Argenti in a memo seen by Gizmodo.
These tools include a developer copilot for coding, a translation tool for internal teams, and a fledgling 'Banker Copilot' designed to streamline workflows for investment bankers. The GS AI Assistant, however, is the first generative AI system to be rolled out across the entire company. The official purpose is to help employees manage tasks like summarizing complex documents, drafting content, and analyzing data, work that can consume hours of human time.
The initiative is not about replacing jobs but about improving how employees work, a person familiar with the launch told Gizmodo. Goldman Sachs, the source said, hopes the tool will enable its employees to drive efficiencies.
But this move is part of a quiet arms race on Wall Street, where firms like Citi, Bank of America, and Morgan Stanley are also deploying AI chatbots to automate the tedious, white-collar work that has employed legions of junior bankers for decades.
According to experts, AI is already transforming these banks. Instead of deploying armies of analysts to manually scan legal documents, for example, some on Wall Street now use AI to identify key clauses in contracts and flag items that require human attention.
Some banks have even built AI to handle margin calls. 'When a client replies to a margin call email with 'yes,' 'no,' or a vague question, the AI analyzes the free-text reply and decides what to do,' a banker at a large investment bank told Gizmodo. If the AI is confident enough, the system automatically books the call. No humans needed.
Even management tasks are being automated. The banker said their firm uses AI to help managers generate staff reviews and objectives, freeing up time and ensuring documentation is more polished.
While the official line is that AI frees up employees for 'higher-value work,' the real-world consequence is a reduced need for human labor. The banker confirmed that because their AI system now processes 85% of all client responses for margin calls, 'the operations team avoided hiring 30 new people.'
At Goldman Sachs, the AI deployment began last year with a developer copilot that is now used by over 12,000 engineers, yielding substantial productivity improvements. Following that success, the firm began expanding the GS AI Assistant, with overwhelmingly positive internal feedback prompting this week's company-wide rollout.
'Our people across the firm are already integrating generative AI into their workflows, driving productivity gains for our teams and delivering benefits for our clients,' Argenti wrote in the internal memo.
Although using the assistant is optional, the message is clear: everyone is encouraged to give it a try. For the tech industry, Goldman's move is a major validation, giving legitimacy to generative AI's role in financial services. It also reflects a broader trend: with AI being baked into software like Microsoft Teams and Outlook, employees are now using it by default.
Of course, this productivity revolution comes at a human cost. If one AI tool is replacing the need for 30 back-office staff in one corner of one bank, what happens when the entire industry scales that up?
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CBS News
21 minutes ago
- CBS News
Audit questions Sacramento's homeless spending, motel program under scrutiny
There is new scrutiny over Sacramento's spending on homeless programs. A city audit reveals some inaccurate charges and questionable invoices from Step Up, the operator of the city's motel room program that helps keep families in crisis off the streets. Nicia Mars is surviving as a single mom living with her three children in a Sacramento motel room. "So I'm a basic single mom of three kids," Mars said. "I have a 17-year-old and then my two little ones. We got involved with the Step Up program. They've been helping us." Mars is one of thousands who have enrolled in the Sacramento city-funded program. This year is better than last year. "We were in our car waiting to get help," Mars said. "It took us a minute. It was hot last year. Car. Hotel. Car. Hotel." "It really is a crisis to get our most vulnerable off the streets," City Councilmember Lisa Kaplan said. Kaplan is concerned that a new city audit shows only 32% of enrollees in the city motel program go on to find permanent housing. The city auditor compared it favorably to programs like it. Kaplan wants better "Thirty-two percent that enter exit into positive housing," Kaplan said. "Now you and I, as we grew up, that's an 'F.' That says you're not succeeding." The city auditor also found in a sampling of receipts that the program host invoiced one charge for furniture delivered to Los Angeles, not Sacramento motels — the total cost was $4,760. The audit also identified over $50,000 in invoiced furniture and rental assistance expenses that were questionable. "How do we put controls in place so we don't have these mistakes?" Kaplan said. The city auditor will be presenting this audit to the full council on Tuesday. The council will then have the opportunity to put new rules in place, possibly tying funding to outcomes of permanent housing. "If this wasn't available, I don't know where I would be," Mars said. "It's hard."
Wall Street Journal
25 minutes ago
- Wall Street Journal
$30 Minimum Wage Has L.A. Hotel Owners in Revolt
Hotel owners are in open revolt against Los Angeles's new $30-an-hour minimum wage, the latest blow to one of the country's poorest-performing lodging markets. This was supposed to be a great time to own a hotel in L.A. The area will soon be at the center of the globe's premier sporting events, first as a host city for eight World Cup soccer games next year, and then the Super Bowl the following year. In 2028, L.A. hosts the summer Olympics.
Forbes
an hour ago
- Forbes
The Retail Strategy Helping Canadian CPG Brands Win In The U.S.
Blume's Superbelly product will be a $20 million product line this year. Canadian consumer brands have long seen the U.S. as a critical market for growth. However, as direct-to-consumer models mature, many consumer packaged goods (CPG) companies find their most impactful traction through strategic physical retail partnerships. Rather than casting a wide net, these brands leverage highly curated U.S. retailers to establish credibility, gain trial, and unlock national expansion. For emerging Canadian names like Blume, Mid-Day Squares, and Nuts For Cheese, retailers such as Whole Foods, Sprouts, Erewhon, Wegmans, and more are proving to be more than just distribution points; they're brand-building partners. The Case For Focused Retail The U.S. offers scale, diversity, consumer appetite, and steep competition for Canadian brands looking to expand beyond their borders. Many brands have succeeded not by entering every primary market at once, but by starting small, learning quickly, and scaling intentionally. Nuts For Cheese chose to launch first in California, a market known for early adoption of wellness and plant-based products. "Our U.S. expansion mirrored our successful brand-building approach in Canada: sustainable, regional growth driven heavily by physical retail. As an artisan plant-based cheese brand, establishing a presence in stores was crucial for building both awareness and credibility in the highly competitive U.S. market," said Margaret Coons, founder of the company. This regional approach allowed them to fine-tune their messaging and formats in a receptive region before expanding nationally. Nuts For Cheese is in over 5,000 U.S. retail stores. Blume, which crafts superfood lattes and gut health drinks, took on a similar strategy. Karen Danudjaja, co-founder of Blume, echoed the need for restraint. "One of the biggest mistakes I think CPG brands can make, especially ones that don't have a lot of outside customers, is going too wide too fast. We're saying no to a lot of new distribution to really focus on Whole Foods and Sprouts." This region-first approach allows brands to build operational knowledge and local brand affinity before chasing national scale. It also allows them to support in-store performance through events, demos, and regional marketing, creating a feedback loop between direct-to-consumer awareness and brick-and-mortar results. Retail As A Growth Driver Across the board, physical retail has helped Canadian brands achieve something that digital alone can't: credibility and growth. While direct-to-consumer allowed many to gather early insights and build loyal customer bases, being on-shelf in well-regarded U.S. retailers has accelerated trial and trust. Mid-Day Squares co-founder Jake Karls explained the effect, "Retail has played a massive role in growing our U.S. presence. Today, we sell in thousands of stores across the country, and the U.S. now represents over 60% of our total business. That growth wouldn't have happened without physical retail." Karls said the team started by leaning into Erewhon, then quickly scaled through an unplanned but welcome opportunity with Sprouts, which brought them into over 20 states. That unexpected acceleration required the brand to build new capabilities in field marketing and paid media around store locations. Luckily, the founders have been recognized for their social media strategy and were able to replicate that for stores. Mid-Day Squares first launched in Erewhon's retail stores, but has since expanded into over 20 ... More states with Sprouts. ©LaChance 2025 - All Rights Reserved Blume saw a similarly rapid leap from direct-to-consumer to retail success with SuperBelly's probiotic hydration line. After launching online, the product entered Whole Foods and Sprouts within its first year, outpacing the six-year journey its latte blends had taken to land in physical retail. According to Danudjaja, sales have been robust in natural channels, aided by a format strategy that adapts product sizing for each channel. Meanwhile, Nuts For Cheese leveraged strong early results in natural grocery stores to expand into conventional retailers like Wegmans. "Our U.S. retail presence has had a measurable and significant impact on brand awareness, sales growth, and customer acquisition. Since launching in the U.S. in 2020, our total business has more than doubled in size, largely due to our expanding retail footprint,' said Coons. All three brands point to a clear pattern of physical shelf space driven by real-world engagement. It turns online fans into trial users, and trial users into long-term customers. Learning The U.S. Retail Market The move into physical retail also forces Canadian brands to understand U.S. consumer behavior at a deeper level. Each region can differ dramatically regarding taste preferences, price sensitivity, packaging size, and merchandising. Rather than national launches, these brands are taking a localized playbook approach. Mid-Day Squares, for example, started by geo-targeting Meta ads around Sprouts locations and producing content highlighting the ups and downs of building a CPG business. Karls said these efforts, combined with what they call "bars to bellies" demoing, made the brand feel personal and authentic to new audiences. Blume's Superfood Latte products on shelf at Target. Blume also treats the U.S. as a learning lab. "We have people who are subscribers online, and they also pick it up in store. It's really like consumers are becoming more and more omnichannel, said Danudjaja, adding that "the awareness we build online supports retail." The strategy is paying off. Blume's SuperBelly reached over 11,000 subscribers in its first year and will be a $20 million product line this year. It's also distributed in over 6,000 retail stores across the U.S. and Canada. Nuts For Cheese now spans over 5,000 retail doors across Canada and the U.S., and Mid-Day Squares reports that 70% of its business is now through retail. Though each brand has followed its own path, their playbooks share core elements, including leading with regions that match brand values, selecting retailers that support education and trial, and balancing physical presence with digital storytelling. For Canadian CPG brands, entering the U.S. isn't about blanketing every state, but about showing up where the right consumers already are and building slowly but deliberately. Through partnerships with various retailers, these brands aren't just landing shelf space; they're writing new cross-border playbooks. And in doing so, they're proving that when approached strategically, retail is not just a distribution channel but a long-term growth engine.
