Behind the scenes at Goldman Sachs, thought-provoking insights are bubbling up each day. This space is for a few nuggets we think are worth sharing. From macroeconomics to the genome medicine revolution to the rise of digital gaming, these stories from around 200 West show you how top-level views can impact your life (and maybe even shape the way you think about money).
If artificial intelligence – or AI – makes you think of just-minted companies, a roundtable discussion with HR executives held by Ayco (a Goldman Sachs company) might change your mind.
We pulled out some highlights below, and encourage you to read the Briefly... wrap-up of the discussion. Pair the Briefings read with this Long & Short of It video about the AI investment landscape for some additional perspective on how AI has to change and shape businesses from within.
To kick things off, let’s get to what may be the first question – why ask human resources professionals about artificial intelligence?
When we think of human resources, we tend to think of it as the team you contact to get information about benefits. It’s also a department you share a lot of information with – when you applied for a job, after you landed it, as you get promoted, etc.
This amount of information is kind of the point when you’re talking about artificial intelligence. AI relies on data, and human resource databases are a prime example of a data-rich environment where AI technology can be put to work.
One example of where this happens is AI finding in-house talent. That’s the case for UnitedHealth Group, which has an algorithm that can identify leadership qualities among its pool of employees. The company then uses that information to identify early-career employees they want to nurture for leadership roles.
At Panasonic, AI is shaping the course of business itself. In 2020, they are scheduled to release 140 new products – seven times what they usually role out in a single year. The driver behind the uptick? A form of AI called predictive analytics, which predicts (obviously) future trends based on past data.
In addition to fueling new products, Jung Min from Goldman Sachs’ Investment Banking Division says AI’s demand for data has the potential to impact companies.
In this instance, he’s talking mature organizations that probably aren’t considered tech companies, but have loads of data across a wide array of fields. Min says the more proprietary and unique this data is, the more valuable the company becomes. (Beyond the amount of data an HR department holds, think about the amount of data tucked into discrete areas of a company).
While there are valid concerns about AI eliminating or reshaping jobs, there’s a shared sentiment that AI will create new jobs. Based on its current state, it’s also not quite ready to replace humans, according to the executives at the Ayco roundtable.
The National Business Group on Health, for example, sees AI serving a backup role, or a tool that gathers information that can support smart decisions. UnitedHealth Group shares a similar perspective, which is that current AI can’t yet compete with the “imaginative thinking we associate with the human mind.”
This article is for informational purposes only and is not a substitute for individualized professional advice. Articles on this site were commissioned and approved by Marcus by Goldman Sachs®, but may not reflect the institutional opinions of The Goldman Sachs Group, Inc., Goldman Sachs Bank USA or any of their affiliates, subsidiaries or divisions.