Despite concerns about AI hype, Solomon sees a revenue opportunity for Goldman in financing the infrastructure required for the AI boom. The bank is also exploring the use of AI in its own operations to boost productivity. Despite setbacks in consumer lending, Goldman's investment banking business has remained strong, with net revenues in its global banking & markets division soaring to $9.73 billion, up 15% from Q1 2023 and 53% higher than Q4 of last year.
Key takeaways:
- Goldman Sachs CEO David Solomon is optimistic about the potential of artificial intelligence (AI) to enhance the company's bottom line and drive more business.
- Goldman Sachs is advising clients on how to deploy AI in their operations and is also looking to deploy AI within its own operations to enhance productivity.
- Despite concerns about AI's economic impacts and regulatory trajectory, Solomon sees AI as a revenue opportunity for Goldman as it lends to companies and arranges their debt and equity deals.
- Goldman Sachs' global banking & markets division saw a significant increase in net revenues, partly driven by a rebound in debt underwriting deals and more companies seeking to go public.