Reports reveal that software developers at leading global investment banking, securities, and investment management firm, Goldman Sachs, are internally using generative AI tools to assist in writing and testing codes.
Former Amazon Executive and current Chief Information Officer (CIO) of Goldman Sachs Marco Argenti disclosed that the firm’s software engineers have been using the AI technology to automatically generate lines of code.
He said,
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“Developers are already using some of the assisted coding technology to write codes. It is currently in a proof of concept stage and not yet ready for production. It is still very early, you wouldn’t put immediately all your most important workloads there, but the imperative is to really try to understand the potential”.
“In some cases, developers have been able to write as much as 40% of their code automatically using generative AI. They are using the software to both test code and generate new ones. If you actually have a GPT-like technology that tests the code, or you generate the tests for the GPT code, you are creating this dualism where you test the machine and you get the machine to test your work”.
Argenti however declined to reveal the generative AI products that developers at the company have been using. He also did not specify which bank division the tech is being used in.
Goldman’s use of generative AI products comes despite a pushback from some banking giants in the use of ChatGPT internally. It is interesting to note that JPMorgan, Goldman Sachs, Citigroup, and Bank of America all restricted their staff from using AI software.
Reports suggest that the ban wasn’t a result of any particular incident but rather due to concerns about potential regulatory risks surrounding the sharing of sensitive financial information with OpenAI’s chatbot.
Meanwhile, Goldman Sachs has invested heavily in turning the bank into a more technology-driven company in recent years. The firm launched Marcus, a standalone digital bank focused on consumers in 2016, and rolled it out to the U.K. in 2018. In its drive to use AI to enhance its bank operations, it would be recalled that in 2021, Goldman Sachs set up a fund of $72.5 million exclusively to invest in the field of Artificial Intelligence algorithms and as well as analytics.
The bank is keen on maintaining its brand image by offering unmatched customer experience, enhanced data security as well as service.
It is not far-fetched to say that Artificial Intelligence (AI) is playing a significant role in driving the world toward a tech-enabled future. It is transforming businesses to adapt to a new digital domain that is powered by high-tech machines that can help solve critical problems across diverse industry verticals. The finance and banking sectors, in particular, are keen on embracing AI to safeguard customers against fierce competition in this sector.
Most banks are reportedly focusing their efforts on AI-enabled applications for risk mitigation, particularly fraud detection, and cybersecurity systems. These applications have a proven history of ROI in the financial services industry.