Former investment banker and author, John LeFevre, underscoring what Goldman Sachs chief David Solomon had said, warned that white collar jobs will be the first ones to go due to artificial intelligence (AI). Solomon had said that the tedious job of drafting public filing documents was now being done by AI in the company.
“I'm not sure people understand how important this is: Goldman Sachs CEO says that AI can draft 95% of an IPO prospectus “in minutes.” White collar jobs will go first.... and fast,” said LeFevre.
Speaking at the Cisco AI Summit in Palo Alto, Solomon had said that the bank is using AI to help draft initial public offering (IPO) documents. Among its strength of 46,000 employees, 11,000 are engineers, he said, according to a report in Financial Times.
The initial registration prospectus for an IPO, called S1, usually took a six-person team two weeks to complete. However, now 95 per cent of the work can be completed by AI in minutes, he said.
“The last 5 per cent now matters because the rest is now a commodity,” said Solomon, as per the FT report. He also asked private companies to take ‘great caution’ before deciding to go public, adding that the depth of capital in private markets has made the need to go public redundant for many.
Meanwhile, Meta CEO Mark Zuckerberg had recently said in a podcast with YouTuber Joe Rogan, indicating a potential disruption in the jobs market. "We will get to a point where all the code in our apps and the AI it generates will also be written by AI engineers instead of people engineers," he had said.
Similarly, Google CEO Sundar Pichai had said that 25 per cent of all new code in the company is now generated by AI, while IBM CEO Arvind Krishna revealed that AI had the potential to replace up to 30 per cent of the company’s back-office roles.
The rapid advancement in the field of AI has ensured that the debate around AI replacing human jobs continues.