Goldman Sachs CEO David Solomon said that artificial intelligence is not about reducing headcount, but about enabling the bank to afford and attract more high-value talent. Speaking with Axios, Solomon emphasized that the firm’s goal is not to hire fewer people, but to hire better ones. “We need more high-value people,” he said. “We can afford more high-value people to expand our footprint and continue to grow and broaden our business.” Solomon stressed that AI will enhance productivity across roles, making analysts, associates, and investment bankers more effective. He reiterated his expectation that Goldman Sachs will grow its workforce over the next decade, driven by AI’s ability to streamline operations and free up time for higher-value client-facing work. Despite this long-term optimism, the bank recently announced its OneGS 3.0 initiative in a memo to employees, which includes a “limited reduction in roles” as part of an AI-driven transformation. The company also said it will cap headcount growth through the end of the year. However, a Goldman spokesperson clarified that the firm still expects to end the year with a net increase in employees. Its global workforce grew 5% to approximately 48,000 people, according to third-quarter earnings. Solomon highlighted that Goldman spent $6 billion on technology this year and believes the firm will become “a much bigger enterprise” in the long run. He acknowledged that some roles will shrink or evolve, but said he wants to use the efficiency gains to bring in more people to focus on client relationships. The bank employs around 12,000 technologists, and Solomon said AI is expected to have the most immediate impact on software development. At a recent conference in early October, Solomon noted that the rapid pace of AI advancement could lead to increased volatility in certain job functions, with the composition of engineering teams likely to shift significantly in the near future. AI is reshaping the financial industry, with major banks, private equity firms, hedge funds, and asset managers making substantial investments in the technology. Solomon’s comments came ahead of the Goldman Sachs 10,000 Small Businesses Summit in Washington, DC, an event Business Insider will be covering.