Leading bank Goldman Sachs has deployed AI products such as ChatGPT for developers to experiment with code development.
Goldman Sachs (NYSE:GS) is reportedly using in-house artificial intelligence (AI) to help developers write code. This was revealed to the public by a top executive of the New York-based banking giant. AI development is currently in the “proof of concept” stage, according to Marco Argenti, chief information officer at Goldman Sachs. Argenti further said that Goldman Sachs’ generative AI tools experiment is not yet ready for production.
However, the Goldman Sachs AI testnet was developed amid a banking crackdown on the use of ChatGPT. For example, last month several reports said that JP Morgan (NYSE: JPM) banned its employees from using ChatGPT.
Commenting on Goldman Sachs’ ongoing internal test of generative AI tools, Argentina Said that “it’s still too early … you’re not going to put all your most important workloads out there immediately, but there’s an imperative to try to really realize the potential.”
The revolutionary potential of the Goldman Sachs AI initiative
On the revolutionary potential of the technology in the banking space and other mainstream sectors, Argento said:
“I’ve been in technology for about four decades or more, and this is one of the biggest disruptions I’ve seen. Probably on par with internet, apps, cloud – it’s an order of magnitude.
Argento also revealed that Goldman Sachs developers deployed the software to test the code and generate new ones. The bank’s Chief Information Officer explained:
“If you actually have a technology like GPT that tests code, or you generate tests for GPT code, then you are creating this dualism where you test the machine, and you test your work. Get the machine to test.”
Despite its enthusiasm to share generative AI updates, Argento did not identify the AI products currently being tested. The Goldman CIO also declined to specify which bank division is experimenting with the technology.
According to Argento, developers sometimes automatically write up to 40% of their code. However, the Goldman Sachs executive stressed that AI should not become a replacement for software developers. Instead, the tools should be more collaborative in increasing productivity.
Goldman’s interest in generative AI comes despite opposition by some of its banking contemporaries, including JPMorgan. In February, JPM expressed concern about the potential regulatory risks associated with sharing sensitive financial information. A few days later, other American banking giants including City Group (NYSE: C) and Bank of America (NYSE:BAC), also implemented similar AI restrictions. In addition, these major banks, including Goldman, have blocked access to ChatGPT in line with standard restrictions on third-party software use.
Fed rate hike forecast
In other recent news, Goldman Sachs economist David Mericle predicted that the Fed would stop rate hike The recent bankruptcies of Silicon Valley Bank (SVB) and Signature Bank should worry the central bank, according to Mericle, about the causes of the banking crisis. He also said that markets remain “not quite convinced” despite the flow of support to the financial system.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip crypto stories down to the basics so that anyone anywhere can understand without a lot of background knowledge. When he is not delving deep into crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
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