Morning Coffee: David Solomon's new reason Goldman Sachs bankers will be busy for the next decade. Data specialists vs liberal arts graduates

efinancialcareers.com:

Goldman Sachs CEODavid Solomon has always been optimistic that investment banking revenues would come back again. Solomon's past optimism was, however, based upon the premise that the energy transition and pent-up dealmaking and capital raising would lead the revival. Speaking yesterday, he added a new factor to the mix.

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Artificial intelligence (AI) will keep Goldman's bankers busy for the next five to ten years, said Solomon, speaking on Goldman's investor call to mark itsfirst quarter results. They won't be busy adding prompts to large language models themselves, but dealing with the fallout of the AI revolution for clients. AI is cropping up in «virtually every client conversation,» said Solomon. «There is an enormous appetite for perspectives on how certain aspects may play out, including the timeline for commercial impact, shape of potential regulations, impact on jobs, and where value will accrue in the ecosystem.»

The implication is that Goldman's client-facing bankers need to develop fast opinions on how AI works and why it will transform the sectors they cover. AI expertise is the new key to unlocking client conversations, said Solomon: Goldman is busy advising clients about «how to think about potential use cases in their operations.» Longer term AI considerations will themselves drive deals, and «there will be significant demand for AI-related infrastructure and as a result, financing,» Solomon declared. 

Separately, and simultaneously, AI is transforming Goldman's own business. Solomon noted that the firm has «a leading team of engineers dedicated to exploring and applying machine learning and artificial intelligence applications,» to use cases within