Goldman Sachs launches $500 million AI institute, says most firms won’t need frontier models

David Solomon, chief executive of Goldman Sachs, introduced a $500 million Small Business AI Institute at the bank’s headquarters, extending the firm’s long-standing 10,000 Small Businesses initiative. He noted that frontier AI models, while critical for areas such as defense, cybersecurity and pharmaceutical research, are largely irrelevant to the daily operations of most businesses. The institute will draw on resources from Anthropic, Google, Meta and OpenAI to deliver educational series, certifications and hands-on workshops for small-business owners.

Survey data revealed that 73% of program alumni using AI spend less than $100 monthly, with the majority relying on chatbots and built-in software features. Adoption rates have risen to 86% among graduates, yet only a small fraction have fully integrated AI into core processes. Participants like Allison Dunn of Hibiscus Brew and Hagan Walker of Glo Pals describe AI as a “think partner” that boosts efficiency without adding fixed staffing costs.