Taking Goldman Sachs' CEO David Solomon's suggestion that ‘AI can write 95 percent of an IPO prospectus accurately’ into consideration, Perplexity boss Aravind Srinivas made an even bolder assertion that he believes the probability of AI writing an IPO prospectus accurately has increased to 98-99 percent.

Earlier this year at the Cisco AI Summit in California, David claimed that AI can write 95 percent of an IPO prospectus accurately and humans are required for the last 5 percent of the work. David emphasized that while a team of six people can complete the process of drafting an initial registration prospectus for an IPO, known as the S1 in around two weeks, AI can now accomplish the same task within minutes. However, the last 5 percent now matters because the rest is now a commodity.

Industry experts mention that, apart from drafting IPOS, AI is expected to improve bank productivity; however, it is difficult to make money from it. As per reports, David observed that machine learning and AI have the potential to enhance productivity in the bank, particularly in coding tasks. Goldman Sachs has 11,000 engineers among its 46,000 employees, who do an enormous amount of coding.

 

David said with these tools, we can increase their coding productivity by 20 or 30 percent.

 

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He added, Leading banks are utilizing AI in virtual assistants for clients and have introduced tools for employees in compliance, finance, HR, and risk management, all while developing products for wealth management.