Goldman Sachs is doubling down on human wealth advisors, even as artificial intelligence (AI) increasingly handles parts of their work. The bank recently welcomed its largest-ever class of new private wealth advisors, with over 120 joining its four-week training program this summer, 30% more than the previous year. While AI can manage routine tasks for middle-class investors, Goldman believes managing complex, high-stakes portfolios for ultra-wealthy clients requires a deeply human touch. This includes navigating sensitive family dynamics, such as wealth distribution among heirs.
The training program emphasizes soft skills like building trust and rapport, alongside financial expertise. Advisors learn to tailor their communication to different clients, whether they prefer detailed explanations or high-level overviews. John Mallory, global co-head of Wealth Management, notes that relationship-building is key, especially as over half of Goldman's private wealth clients have been with the firm for more than a decade.
Goldman Sachs sees private wealth management as a growing opportunity, particularly as over $100 trillion in wealth is set to transfer between generations. The firm’s COO, John Waldron, predicts AI will create even more ultra-wealthy individuals, reinforcing the need for skilled human advisors. The bank plans to continue hiring advisors, recognizing that relationship-building is a long-term investment.
While AI tools like GS Assistant help advisors understand complex financial products, human judgment remains irreplaceable. Advisors must interpret unspoken client needs and provide accountability, qualities AI cannot replicate. Whitney Pigott, a new advisor, highlights the importance of mentorship, working alongside experienced colleagues to refine her skills. The firm’s approach underscores the enduring value of human expertise in wealth management.