No ‘employment catastrophe’: Goldman Sachs CEO refutes claims that AI is causing a hiring crisis

Goldman Sachs CEO Counters AI Job Loss Concerns

As anxiety grows over the possibility that artificial intelligence could lead to economic growth without job creation, David Solomon, Chairman and CEO of Goldman Sachs, has pushed back against such pessimism. Speaking in January during a surge in investment in AI infrastructure, Solomon reassured that the labor market is not on the brink of disaster.

“I don’t subscribe to the idea of a job apocalypse,” Solomon stated on the Goldman Sachs Exchanges podcast, dismissing the belief that this technological revolution poses a fundamental threat to employment.

Although he acknowledged that the job market appears fragile compared to recent economic expansion, Solomon maintained that the current changes are simply another phase of creative destruction, not something unprecedented.

“For decades, technology has disrupted and transformed jobs, eliminated some roles, and compelled our economy to generate new opportunities,” he explained. “This time is no exception.”

Solomon referenced research by Goldman Sachs Chief Economist Jan Hatzius, highlighting that while rapid technological change can cause short-term upheaval, there is no indication of a lasting increase in unemployment rates.

Transforming Goldman Sachs: The One GS 3.0 Initiative

Solomon applied this perspective to Goldman Sachs itself, introducing a new program called “One GS 3.0.” Rather than focusing on workforce reductions, the initiative aims to overhaul six essential business processes—including onboarding and know your customer (KYC)—through automation and comprehensive redesigns.

“We believe these processes can greatly benefit from a fresh approach and automation,” he said, “because today’s technology enables us to operate differently.”

According to Solomon, the primary objective of integrating AI at Goldman Sachs is to boost the firm’s capacity, not to cut jobs. “If we implement this correctly, I don’t expect a significant decrease in our workforce,” he noted. Instead, increased efficiency will allow the company to pursue growth opportunities that were previously out of reach.

However, Solomon admitted that such transformations are challenging. While employees are eager to use tools that enhance their productivity, completely revamping established workflows like KYC is a much bigger undertaking. “Changing processes in a large organization is tough and will take time,” he cautioned, emphasizing that it requires a fundamental shift in the human resources involved.

AI Implementation: Costs, Challenges, and Realities

Solomon’s views echo recent findings by Wharton professor Peter Cappelli, who told Fortune that adopting AI is neither inexpensive nor straightforward, nor does it guarantee staff reductions. For example, Ricoh implemented AI and tripled productivity, but it took a year to break even due to high monthly costs and significant upfront consulting fees.

“It’s expensive and took a considerable amount of time,” Cappelli remarked.

Tempered Expectations for AI’s Corporate Rollout

Despite his optimism for the future, Solomon offered a cautious outlook for the speed of AI adoption in businesses by 2026. While he dismissed the notion that AI is losing momentum—calling it “remarkable technology”—he suggested that expectations may need to be adjusted in the near term.

“The pace of investment will keep increasing,” Solomon predicted. “But whether demand and adoption will match current expectations is uncertain, and we may see a reality check during the year.”

He further suggested that by 2026, companies may realize that integrating AI into their operations is more complex and time-consuming than initially thought, potentially slowing down implementation.

Industry Leaders Weigh In: Is AI a Bubble?

At the World Economic Forum in Davos, Microsoft CEO Satya Nadella expressed a similar sentiment. He acknowledged that AI could become a bubble, but only if the conversation remains focused solely on technology companies. Nadella argued that true transformation requires widespread adoption across industries, much like the computing revolution of the 1980s.

“We created the concept of knowledge work, where people used computers to enhance their productivity through software,” Nadella explained. “I believe AI will bring about a similar shift.”

AI’s Expanding Potential Across Industries

Solomon’s remarks come amid what he describes as a “massive wave of capital investment in AI infrastructure,” which he sees as a major driver for the global economy in 2026. He remains confident in AI’s ability to boost productivity, not just in finance but also in fields like healthcare.

“Opportunities are growing, not shrinking,” Solomon concluded. He highlighted the potential for technology to revolutionize areas such as disease and cancer treatment as reasons to remain positive about the current era of economic growth.

In this respect, Solomon’s outlook aligns with that of Nvidia CEO Jensen Huang, who also dismissed fears of an AI bubble during his Davos interview. Huang described the AI sector as a “five-layer cake” requiring a complete industrial overhaul, with energy at the base, followed by chips like Nvidia’s GPUs, then cloud infrastructure, models, and finally applications. Both Solomon and Huang believe that this layered approach means opportunities in AI will continue to expand.

This article was first published on Fortune.com.