Chris Churchman, a partner at Goldman Sachs who leads the bank’s digital platform for institutional clients called Marquee, has raised concerns about the implications of artificial intelligence becoming pervasive throughout the financial services industry. In remarks during the firm’s “Exchanges” podcast, Churchman warned that heavy reliance on AI systems could result in what he termed “cognitive atrophy,” where bankers lose the ability to reason from first principles and become dependent on algorithmic decision-making.
Churchman drew parallels to historical technological disruption, noting that people lost certain skills such as navigation and memorization following the advent of modern inventions. He emphasized that reasoning remains a critical component of financial work, requiring bankers to analyze problems and construct logical arguments. The trend toward automating increasingly complex banking functions potentially compromises this foundational skill development among junior employees.
The adoption of AI across Wall Street presents what some view as a trade-off between near-term profitability and long-term talent development. As algorithms assume responsibility for routine analytical tasks that have traditionally served as training grounds for junior bankers and traders, firms risk disrupting the apprenticeship model that has historically developed financial talent. Wall Street institutions have already begun exploring ways to use AI to reduce the ratio of junior bankers to senior staff, potentially further limiting entry-level learning opportunities.
Churchman stressed the importance of preserving what he called “tacit and intuitive knowledge” possessed by experienced professionals, much of which remains unwritten and is transmitted through hands-on work experience. He cited the example of junior traders learning through supervised client pricing requests under experienced risk managers. While such functions could be automated, Churchman questioned whether the industry would continue producing senior traders with comprehensive market understanding.
Even at Goldman, one of the world’s most advanced investment banks in AI deployment, Churchman acknowledged the firm has not yet fully resolved how to manage this transition. He noted that Marquee’s AI capabilities remain in internal testing phases. Technical challenges include ensuring complete factual accuracy and auditability of AI-generated responses, with zero tolerance for errors in high-stakes financial decisions—a constraint that differs significantly from consumer-facing AI applications.
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