Blankfein: LLMs create systemic risk by removing institutional intuition and audit trails
Lloyd Blankfein · Goldman Sachs Chairman on Why Finance Adopts AI Differently | a16z · May 12, 2026 · at 1:04:34
Lloyd Blankfein, former Chairman and CEO of Goldman Sachs, discusses operational risks associated with artificial intelligence adoption in institutional finance.
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“You know, one of the, you know, when you get, when you go into some of these large language models, you don't know the thought process. You lose intuition in these things. It used to be when I started out in the business, You know, people be shrieking each other, noisy trading rooms, blah, blah, blah. People be fighting with their wives or their husbands while they were sitting at the desk. At the same time, people are transacting. But if somebody said the wrong price, or did a trade backwards, bought something when he should have said sold, the whole room would come to a dead stop and you'd hear it. And today, you don't have that intuition because everything is whirring behind the scenes and you don't get the trail or the thought process of these things. That's a problem.”
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