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Leading bank Goldman Sachs has deployed ChatGPT-like AI products for developers to experiment with code development.
Goldman Sachs (NYSE: GS) is reportedly using in-house artificial intelligence (AI) to assist developers with writing code. A top executive at the New York-based banking giant revealed this to the public. According to Goldman Sachs chief information officer Marco Argenti, the AI development is currently in a “proof of concept” stage. Argenti further stated that Goldman Sachs’ generative AI tools experiment is not yet ready for production.
However, the development of Goldman Sachs AI testnet comes amid a banking crackdown on ChatGPT usage. For instance, multiple reports stated last month that JPMorgan (NYSE: JPM) had restricted its staff from using ChatGPT.
Commenting on Goldman Sachs’ ongoing internal test of generative AI tools, Argenti said that “It’s still very early… You wouldn’t put immediately all your most important workloads there, but the imperative is to really to 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 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 deployed the software to test code and generate new ones. The bank’s chief information officer explained:
“If you actually have a GPT-like technology that tests the code, or you generate the tests for the GPT code, you’re creating this dualism where you test the machine, and you get the machine to test your work.”
Despite his enthusiasm for sharing the generative AI update, Argenti did not identify the AI products currently being tested. The Goldman CIO also declined to state which bank division is experimenting with the tech.
According to Argenti, developers sometimes write as much as 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 in boosting increased productivity.
Goldman’s interest in generative AI comes in spite of pushback by some of its banking contemporaries, including JP Morgan. In February, JPM expressed concern regarding 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 major banks, including Goldman, blocked access to ChatGPT in line with standard restrictions on third-party software usage.
Fed Rate Hike Forecast
In other recent news, Goldman Sachs economist David Mericle predicted that the Fed would pause rate hikes due to 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 towards the financial system.