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

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.