Goldman Sachs Tests AI Agent Devin as Autonomous Coder

Goldman Sachs, one of the world's leading investment banks, is set to integrate a groundbreaking AI coding agent named Devin into its workforce. The bank's Chief Information Officer (CIO), Marco Argenti, recently announced the move to CNBC, stating that hundreds of instances of Devin will begin assisting human developers, with the potential to scale up to thousands. This decision underscores the bank's commitment to leveraging advanced technology to enhance productivity and efficiency. Devin, developed by the AI startup Cognition, first gained attention in the technology community last year when it was introduced as the world's first AI software engineer. Initially, the program faced criticism from researchers who noted its challenges with more complex coding tasks. However, with the recent release of Devin 2.1, Cognition claims significant improvements, especially for large codebases where the AI can operate with ample context. According to Argenti, the AI agent will not replace human developers but will work alongside them, taking on routine and repetitive tasks to free up engineers' time for more strategic and creative work. Goldman Sachs has been at the forefront of adopting AI technologies, having internally utilized developer copilots since at least 2024. The integration of Devin is a testament to the bank's ongoing efforts to stay ahead in the rapidly evolving tech landscape. The bank currently employs around 12,000 human developers, and Argenti envisions Devin as a complementary tool that can significantly boost their productivity. He highlights a vision of a "hybrid workforce" where humans and AI collaborate seamlessly, with engineers expected to describe problems clearly and supervise AI's work. The adoption of agentic AI on Wall Street represents a significant departure from previous AI applications, which were primarily used for simpler tasks like document summarization and email writing. Devin, as an AI that can execute complex, multi-step jobs such as building entire applications, signals a paradigm shift with substantial potential benefits. Tech giants like Microsoft and Alphabet have reported that AI is already responsible for about 30% of the code in some of their projects, while Salesforce CEO Marc Benioff stated that AI handles up to 50% of the work in his company. These statistics highlight the growing impact of AI in the tech sector. At Goldman Sachs, Argenti anticipates that agentic AI could increase productivity by three to four times compared to earlier AI tools. While Devin will focus on tasks that human developers often find tedious, such as updating internal code to newer programming languages, the broader implications of this technology are significant. The introduction of AI agents could alleviate concerns about monotonous and low-value work, allowing developers to concentrate on higher-level tasks. However, the adoption of AI in the financial industry has also raised anxieties about potential job cuts. Bloomberg Intelligence estimated in January that global banks could cut up to 200,000 jobs over the next three to five years due to AI implementation. Tech executives at companies like Amazon and Ford have become more transparent about how AI will influence hiring plans. Despite these concerns, Argenti emphasizes a collaborative approach where AI serves as a supportive tool rather than a replacement. He believes that future engineers will need to develop the skills to effectively describe problems and oversee AI's execution, fostering a symbiotic relationship between humans and machines. The success of Devin and similar AI agents could serve as a proof point for expanding AI capabilities to other roles within the bank. Argenti points out that the models behind AI agents are nearly as proficient as human developers, making the case for their application in various departments. This expansion would further optimize operations and potentially reshape the way banks function, emphasizing the importance of adaptability and continuous learning for all employees. In summary, Goldman Sachs' adoption of Cognition's AI coding agent Devin marks a pivotal moment in the integration of advanced AI in financial institutions. By implementing a hybrid workforce model, the bank aims to leverage AI's strengths while maintaining human oversight and innovation. This move could lead to significant productivity gains and set a precedent for other banks and industries looking to capitalize on the transformative potential of AI. Industry Insiders and Company Profiles: The announcement of Devin at Goldman Sachs has been met with mixed reactions from industry insiders. Some experts laud the bank's proactive approach to embracing emerging technologies, viewing it as a strategic move to maintain competitiveness in a rapidly changing market. Others express caution, highlighting the need for robust security measures and thorough testing to ensure the AI's reliability and accuracy. Cognition, the company behind Devin, has quickly gained recognition for its innovative AI solutions. Founded in 2022, Cognition focuses on developing AI agents that can perform complex tasks, aiming to revolutionize the way businesses operate by enhancing productivity and efficiency.