Leading bank Goldman Sachs has implemented AI products similar to ChatGPT for developers to experiment with developing code.
Goldman Sachs (NYSE: GS) is reportedly using internal artificial intelligence (AI) to help developers write code. A senior executive of the New York-based banking giant revealed this to the public. According to Goldman Sachs chief information officer Marco Argenti, the development of the AI is currently in a “proof of concept” stage. Argenti further stated that Goldman Sachs’ experiment in generative AI tools is not yet ready for production.
However, Goldman Sachs’ AI testnet development comes amid a banking crackdown on the use of ChatGPT. For example, several reports last month indicated that JPMorgan (NYSE: JPM) had restricted the use of ChatGPT by its staff.
Commenting on Goldman Sachs’ ongoing internal testing of generative AI tools, Argenti saying that “it’s still very early… You wouldn’t put all your most important workloads there right away, but the imperative is to really try to understand the potential.”
Revolutionary potential of Goldman Sachs’ AI initiative
On the revolutionary potential of the technology within the banking space and other mainstream sectors, Argenti added:
“I’ve been in technology for probably almost four decades or so, and this is one of the biggest disruptions I’ve ever seen. Probably comparable to the internet, apps, the cloud: it’s that order of magnitude.”
Argenti also revealed that Goldman Sachs developers implemented the software to test the code and generate new ones. The bank’s chief information officer explained:
“If you really have GPT-like technology that tests the code, or generates the tests for the GPT code, you’re creating this dualism where you test the machine and have the machine test its work.”
Despite his enthusiasm to share the generative AI update, Argenti did not identify the AI products currently being tested. Goldman’s CIO also declined to say which banking division is experimenting with the technology.
According to Argenti, developers sometimes write up to 40% of their code automatically. However, the Goldman Sachs executive stressed that AI should not become a replacement for software developers. Instead, the tool should be more of a companion to drive higher productivity.
Goldman’s interest in generative AI comes despite pushback from some of his banking contemporaries, including JP Morgan. In February, JPM raised concerns about potential regulatory risks associated with sharing sensitive financial information. A few days later, other US banking giants, including Citigroup (NYSE: C) and Bank of America (NYSE: BAC), also implemented similar AI restrictions. Furthermore, these large banks, including Goldman, blocked access to ChatGPT in accordance with standard restrictions on the use of third-party software.
Fed rate hike forecast
In other recent news, Goldman Sachs economist David Mericle predicted that the Fed would halt rate hikes because of the banking crisis. According to Mericle, the recent bankruptcies of Silicon Valley Bank (SVB) and Signature Bank should deter the central bank. He also said that markets remain “less than fully convinced” despite the influx of support for the financial system.
next
Tolu is a Lagos-based blockchain and cryptocurrency enthusiast. He likes to demystify the crypto stories down to the basics so that anyone anywhere can understand them without too much prior knowledge. When he’s not up to his neck in crypto-stories, Tolu likes music, loves to sing, and is an avid movie buff.