The Patience of Leadership: Why Goldman’s CEO is Right on AI and Human Judgment

Goldman Sachs’ CEO David Solomon has made headlines in recent years, but a town hall session with interns reveals a more nuanced approach to leadership. One that values patience, human judgment, and skepticism in the face of emerging technologies. This emphasis on slowing down before acting is a refreshing respite from the hype surrounding AI.

Solomon’s father, Jerry, taught him decision-making skills by encouraging him to consider both sides of an argument – even if it meant taking more time. This approach has become the foundation of Solomon’s leadership style, and he now shares these lessons with Goldman’s next generation of leaders.

One example of this habit is the “legal pad test.” When faced with big decisions, Solomon takes out a piece of paper and divides it in half. He lists his arguments on one side and potential counterarguments on the other. This exercise may seem old-fashioned in an era where AI can rapidly process vast amounts of data, but it’s precisely this kind of human judgment that Solomon believes is essential.

Goldman Sachs’ approach to its core business reflects this thinking. As the firm’s CEO notes, technology accelerates certain tasks, but it cannot replace the emotional connection between clients and their advisors. This insight is more nuanced than some of his previous comments on AI’s capabilities, which have sometimes been overly optimistic.

Solomon’s views on AI have evolved over time, particularly in light of his own research estimating that AI could lead to significant job displacement. In a New York Times guest essay published earlier this year, he conceded the premise before offering a more measured view: “Will A.I. disrupt the labor market? Absolutely.” This willingness to confront uncomfortable truths is a hallmark of effective leadership.

In an era where speed and agility are often prized above all else, Solomon’s emphasis on patience and human judgment serves as a reminder that some decisions require more time and consideration than others. His skepticism towards AI is noteworthy given the industry’s tendency to overpromise.

As Goldman Sachs navigates the rapidly changing landscape of finance, Solomon’s leadership style will be crucial in guiding the firm through uncertain times. By emphasizing human judgment and patience, he sets a valuable example for his team – one that may serve as a model for other leaders seeking to balance technological progress with the complexities of human decision-making.

Solomon’s approach also suggests that true innovation may often require slowing down – rather than speeding up – our thinking. This means recognizing that some challenges cannot be solved by simply throwing more data or computational power at them.

Goldman Sachs’ record-breaking results are a testament to Solomon’s leadership, but his emphasis on human judgment and critical thinking is not just about driving business success. It’s also about cultivating a culture where leaders prioritize careful consideration over speed. Whether or not this approach will be emulated by other leaders remains to be seen, but for now, it serves as a reminder that true innovation may often require patience, rather than speed.