CEO of the world's largest asset management company: AI will significantly increase productivity and employee wages

Author: Li Xiaoyin

Source: Hard AI

Larry Fink, CEO of the world's largest asset management group BlackRock, stated in the latest financial report conference call that the company's investment in AI will ultimately translate into employee salary growth.

Fink pointed out:

"If we continue to increase productivity, wage levels will also rise."

"So if employees do more, the entire organization will create more value with fewer people. This is our goal."

Fink also attributed the company's record of $10.5 trillion in client assets to investments in AI, stating that the asset management scale increased by $2.5 trillion while keeping the number of employees constant. Fink referred to this as "a good illustration of how we strive to improve efficiency and labor."

In fact, Fink has always been a supporter of AI technology and is considered one of the CEOs on Wall Street most bullish on AI. However, the viewpoint that "AI can increase employee salaries" has not been definitively verified.

According to media reports citing industry insiders, the use of AI can automate repetitive tasks for employees, allowing them more time to focus on complex and innovative work, which may lead to higher salaries.

However, on the flip side, AI also to some extent replaces certain labor. Reports indicate that major banks including Goldman Sachs and Morgan Stanley are considering reducing recruitment for junior positions and lowering salary levels as the application of AI technology makes these jobs simpler.

Some economists point out that the benefits of increased company productivity may not necessarily translate into higher employee salaries