Goldman Sachs President and Chief Operating Officer John Waldron has said the firm will introduce new generative AI “robots” to help automate parts of its well-known “human assembly line.” However, he added that this new technology is not expected to cause mass layoffs. The leading global investment banking firm plans to deploy digital agents across the firm to cut down costs and supercharge productivity in a move that could reshape one of New York City’s biggest employers. “We’ve described Goldman Sachs as a human assembly line,” Waldron told CNBC at the investment bank’s 200 West St. headquarters.
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“Manufacturing got robotic decades ago. Banks haven’t because we’re an information company and it’s been harder. We don’t have a factory floor to put robots in,” the 57-year-old added.
“Our human assembly lines will become more digitized, digital agents will be our robots,” he continued. “I’m not sure dynamically how the overall headcount will change, but I think the firm is going to get much more resilient and much more scalable.”
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AI to create new roles
The veteran Goldmanite rejected concerns that AI would lead to a “march of the machines”, causing large-scale layoffs among the bank’s high-paid employees. John Waldron said the firm’s push into AI is expected to create new roles in engineering and technology, keeping overall employee numbers largely stable while making the company more “resilient and scalable.” The senior executive at Goldman Sachs, who has been with the firm for 26 years, also pushed back against the growing social media narrative that AI is the main reason behind recent job cuts in the tech and finance sectors.
“Most of the layoffs and headcount reductions that you report on and that we see really don’t have that much to do with generative AI deployment at this juncture,” Waldron told CNBC.
“I still think it’s a catch-up on what was occurring kind of post-COVID — hoarding employees — and the need to kind of have more engineering, coding capability. We’re now in a different part of the journey.”
He said Goldman would use cutting-edge AI technology to build its very own “digital factory floor.” “Digital agents will be our robots,” he told CNBC. “They will start to change the way we workflow the firm.” He added that this shift is a “big unlock” for the bank and it promises major productivity gains and significant cost savings.
Goldman Sachs warns of a major workforce shift
The comments by Goldman Sachs' COO highlight a clear sign that the AI revolution is becoming a core part of how Goldman Sachs operates and is being used to improve customer service, speed up coding work, and quickly analyze large amounts of data, helping wealth managers make faster and more accurate investment decisions. AI is also expected to reduce routine tasks for junior bankers, such as summarizing earnings calls and preparing pitchbooks.
Earlier, Goldman Sachs economists warned that AI could significantly change the job market. In a report released in March, they said AI could automate tasks that make up about 25% of working hours in the US. They also noted that younger office workers in entry-level roles could be most affected.
Globally, the bank estimated that around 300 million jobs could be impacted by AI-based automation. In the US, it predicted that 6% to 7% of jobs may be displaced over the next decade as companies adopt AI more widely.
The report also said early signs of disruption are already visible, especially in sectors like technology, consulting, customer support, and creative jobs such as design work.
