In a recent episode of Goldman Sachs Exchanges recorded on March 12, 2026, Anthony Gutman and Kunal Shah, co-CEOs of Goldman Sachs International, analyzed the implications of ongoing geopolitical tensions, particularly comparing them to the shockwaves from the Russia-Ukraine conflict of 2022. They concluded that although historical parallels are evident, the starting conditions for the current situation differ significantly. Furthermore, they noted that most economies are now experiencing monetary policies that lean closer to neutrality, complicating the landscape for policymakers who are also grappling with the ongoing technological changes driven by artificial intelligence. Specifically, Gutman and Shah pointed out that despite the escalating conflicts, European equity issuance has seen record volumes recently, indicating robust market activity. They cited sizeable transactions undertaken by major firms, such as a $5.5 billion deal involving EQT and Galderma, suggesting that the market is still buoyant even amidst geopolitical unrest. The persistent activity levels align with their belief that we are in a cyclical upswing rather than heading towards a recession. They attributed the nature of recent mergers and acquisitions to strategic long-term planning rather than reactions to immediate market shocks. The conversation also highlighted a shifting mindset among business leaders who have become more adept at managing market volatility. Gutman observed that executives are developing a greater resilience to operate through uncertainty, a skill honed through experiences with past crises, including COVID-19 and past conflicts. He stated, “CEOs and business leaders at large have become a little bit more accustomed to this,” emphasizing their ability to maintain long-term plans despite ongoing risks. This psychological adaptation signifies a vital transformation within the corporate world in its approach to uncertainty. In addition to discussing the various economic ramifications of geopolitical events, Gutman and Shah acknowledged the transformative impact of AI on business operations. They indicated that AI trends are accelerating growth in M&A rather than impeding it, implying that companies are keen on achieving scale to remain competitive. The Goldman Sachs leaders stressed that they do not foresee impending deep recessions globally, considering the structural stability of the economy amid the current event-driven risks, marking their perspective as cautiously optimistic given the complex backdrop.