:max_bytes(150000):strip_icc()/GettyImages-2257856200-4b9f5d48d17f477bb94f2a737cf8138a.jpg "Goldman Sachs’ CEO Says Young Workers Will Remain ‘Core’ to the Bank in the AI Era")
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Key Takeaways
- While discussing AI, Goldman Sachs CEO David Solomon said young talent will always be “a huge core part” of the banking company.
- Young college graduates are having a hard time finding jobs, but economists don’t think AI is the primary reason they’re struggling.
AI isn’t endangering the future of young bankers at Goldman Sachs, according to its CEO.
AI may alter how the financial services industry functions, but it won’t stop young talent from being “a huge, core part of Goldman Sachs,” David Solomon said Friday on CNBC. He also acknowledged that AI may reduce how many workers are needed. His comments come as college graduates struggle to land entry-level positions, which tend to involve more tasks that can be automated.
“Talented, motivated people that want to serve clients are always going to be a part of professional services businesses,” Goldman’s (GS) Solomon said. “The number might change; how they focus their time will change.”
Why This News Matters to Investors
Regardless of the cause, concerns about unemployment and limited job prospects can prevent people from spending. That can weigh on the economy, which is largely powered by consumer spending.
Businesses are exploring how AI may be able to reduce headcount, but economists don’t think the technology is the main reason 22- to 27-year-old college graduates have a 5.6% unemployment rate. (The general unemployment rate for college graduates was about 3.1% in December, according to the Federal Reserve Bank of New York).
The bigger factor, according to economists, is that companies that scooped up graduates in 2021 and 2022 are now cutting their workforces, which has limited opportunities for young professionals.
Businesses are adapting to AI just as companies evolved when computers and cell phones emerged, Solomon said. Companies still need workers after decades of technological advancements, he said, predicting that artificial intelligence won’t change that.
“We were in the library; we were in microfiche,” Solomon said, describing his early days in the financial services field. “I’d be on a business trip and get a page, you know, with a little analog number showing. I’d have to go return that phone call.”
“The world,” he said, “evolves.”
