Published by Dr. Ken – PhD
In 2017, Gary Cohn, then COO of Goldman Sachs, faced a challenge that would define the bank’s future. The financial services industry was shifting rapidly—competition from fintech startups, volatile markets, and increasing regulatory pressures made traditional strategies less effective.
But Cohn believed the answer wasn’t in more analysts or complex spreadsheets. It was in AI.
“Markets hide patterns we can’t see,” he told his team.
“But AI can help us see the unseen.”
The Blind Spots of Traditional Finance
Goldman Sachs, like most financial giants, relied on historical models to manage risk and guide investments. Yet, Cohn knew these models were backward-looking. They missed emerging opportunities and early warning signs hidden in real-time data streams.
His perspective was influenced by Daniel Kahneman’s Thinking, Fast and Slow, which explores how human biases cloud decision-making. Kahneman argued that while intuition is fast, it’s also prone to error. For Cohn, AI was the solution: a tool to enhance human judgment, not replace it.
AI as a Financial Microscope
Cohn spearheaded the integration of AI across the bank’s operations, focusing on:
- Market Sentiment Analysis: Using natural language processing (NLP), AI scanned global news, earnings calls, and social media for shifts in market sentiment—often identifying trends before they appeared in stock prices.
- Client Behavior Prediction: Machine learning models analyzed years of transaction data, uncovering patterns that helped predict client needs and tailor investment strategies.
- Risk Management in Trading: Real-time AI analytics monitored global market signals, alerting traders to anomalies that human eyes would miss—preventing losses and seizing profitable gaps.
The breakthrough came during a major market event: the sudden spike in cryptocurrency volatility. While many banks were hesitant, Goldman Sachs’ AI models detected a pattern of institutional interest in Bitcoin before it became public knowledge. Acting on this insight, Cohn’s team expanded their crypto trading services—an early move that brought millions in profits and positioned Goldman Sachs as a leader in digital assets.
Deloitte Insight: Why AI Requires Strategy, Not Just Tools
According to Deloitte, AI succeeds only when it aligns with business strategy. Many companies fail by chasing technology without direction. Cohn’s success came from making AI a decision-making partner—from the trading floor to the boardroom. It wasn’t just about seeing opportunities; it was about acting on them.
AI’s Lesson for Entrepreneurs
For entrepreneurs, Cohn’s story carries a crucial insight:
- AI isn’t just for efficiency—it’s for vision. Use it to uncover what competitors can’t see.
- Bias blinds decisions—AI reveals patterns beyond human intuition.
- AI’s power grows when combined with human judgment.
As Andrew Ng, AI pioneer, said:
“AI can augment our own intelligence, helping us to make better decisions and achieve more than we ever could alone.”
Gary Cohn didn’t just embrace AI—he made it Goldman Sachs’ lens to see the unseen. In a world where opportunities often hide in complexity, the sharpest vision wins.
