Goldman Sachs: AI Boosts Preparation, Not a Substitute for Fundamentals

Kim Posnett, co-head of Goldman Sachs' investment banking division, describes AI as useful for preparing meetings and accelerating learning, but not sufficient for training a banker. She urges juniors to balance mastery of tools with the development of human and technical skills, in a group that has invested approximately $6 billion in technology.

Human Skills and Technical Foundations Remain a Priority

Despite the increasing automation, Kim Posnett argues that it remains essential to understand the fundamentals of the profession. She states that "there is no substitute for developing technical expertise and judgment, as well as a deep understanding of markets, clients, and companies." According to her, receiving answers from a tool is of no use without grasping their meaning, abilities that "can only be developed through experience and repetition." While AI can replace tedious tasks like creating presentations or building models, Posnett emphasizes the importance of acquiring the fundamentals and using AI in a way that allows for high-level thinking. She also warns juniors that they must find a balance between mastering AI and becoming dependent on it.

Client Meetings: More Information and a Higher Bar

Kim Posnett observes that AI has transformed the nature of meetings by giving banks and their counterparts access to much more information. The executives and investors she meets now expect higher-quality advice. She summarizes this evolution with a phrase: the level of expectation rises because everyone arrives better informed. In her preparation, she uses AI to synthesize information more quickly, freeing up time for strategic thinking. For juniors, better preparation enhances their presence in meetings and accelerates a learning culture that the company advocates. Analysts can thus spend more time listening to complex discussions and observing how seniors advise during critical decisions.

Internal Framework and Five Practical Tips for Newcomers

Goldman Sachs has invested approximately $6 billion in technology. In his annual letter, David Solomon encouraged this year's interns to experiment with AI. Kim Posnett believes that young professionals, beyond finance, should seek to learn faster, prepare better, and focus their time on high-value tasks. For investment banking analysts, this often corresponds to an acceleration of research activities, such as synthesizing earnings calls or reviewing industry developments. In addressing newcomers, she outlined five recommendations: master the fundamental technical skills in investment banking; refine the formulation of questions; make thoughtful use of the time freed up by AI; actively participate in accelerating learning; and pay particular attention to essential human skills in the business world. She emphasizes the need to understand how technologies work, experiment with them, and derive productivity gains, while also investing "massively" in human skills that AI struggles to replicate: improving the quality of questions asked, honing judgment, communicating, building relationships, and fostering trust. She concludes by reminding that even senior executives are relearning the art of meetings and that AI does not erase the learning of fundamentals nor the automation of repetitive tasks.