Aravind Srinivas claims ‘After Perplexity Labs, AI’s IPO drafting accuracy rises to 98-99%’ | Company Business News

Taking the cue from Goldman Sachs’ CEO David Solomon’s statement that ‘AI can write 95% of an IPO prospectus accurately’, Perplexity boss Aravind Srinivas made an even bolder assertion — after Perplexity Labs, he believes that the probability of AI writing an IPO prospectus accurately has increased to 98-99%.

What Solomon said about AI writing IPO prospectus?

Earlier this year, Solomon, while at the Cisco AI Summit in California, claimed that AI can write 95% of an IPO prospectus accurately and humans are required for the last 5% of the work, a Financial Times report had pointed out.

Discussing the process of drafting an initial registration prospectus for an IPO, known as the S1, Solomon noted that while a team of six people can complete it in around two weeks, AI can now accomplish the same task “within minutes.”

“The work of drafting an S1 might have taken a six-person team two weeks to complete, but it can now be 95 per cent done by AI in minutes. The last 5 per cent now matters because the rest is now a commodity,” he said.

Goldman Sachs has 11,000 engineers among its 46,000 employees, who Solomon said are “using AI to help draft public filing documents”, the FT report added.

AI to improve bank productivity

Apart from drafting IPOS, AI is expected to improve bank productivity; however, it is difficult to make money from it, Reuters reported in December, citing industry experts.

While speaking at the Reuters Conference in December, Solomon observed that machine learning and AI have the potential to enhance productivity in the bank, particularly in coding tasks.

“We have 11,000 engineers. We do an enormous amount of coding. If we can increase with these tools their coding productivity by 20 or 30 per cent, it’s a huge tailwind for us,” he said.

Leading banks are utilising AI in virtual assistants for clients and have introduced tools for employees in compliance, finance, HR, and risk management, all while developing products for wealth management, the report added.

(With inputs from Reuters)