Morgan Stanley, is getting ready to introduce a smart AI chatbot to make its rich clients’ interactions better. They teamed up with OpenAI to create this AI bot, which is based on the ChatGPT technology. They’ve put it through some serious testing with a group of 1,000 financial advisors, and now they’re getting ready to roll it out to more clients.
With the clients’ permission, this chatbot will do various tasks like summarizing meetings, writing follow-up emails with suggestions on what to do next, keeping sales records updated, managing appointments, and giving financial advice on things like taxes, retirement savings, and inheritances. It will also help bankers access research and forms quickly, which will save them a lot of time and effort.
AI Rising Influence in Finance
Morgan Stanley’s Chief Information Officer for Wealth and Investment Management, Sal Cucchiara, thinks AI is going to have a big impact, much like the internet did. In 2022, he had talks with OpenAI folks and realized their tech was top-notch, leading to a partnership deal.
This AI chatbot fits with Morgan Stanley’s plan to grow their wealth division. They want to manage $10 trillion in assets, and they’ve already seen their revenue go up by 16%, along with gaining $90 billion in new client assets during the second quarter.
But Morgan Stanley isn’t the only one diving into AI. JPMorgan, Chase hired a Chief Data and Analytics Officer to lead AI efforts, and Bank of America has their own virtual assistant called Erica. Moody’s Analytics is also working with OpenAI and Microsoft to create a research assistant.
Even though AI is getting a big role in finance for things like crunching numbers, spotting fraud, and analyzing customers, it’s important to know that human advisors will still be the main source of investment advice. The chatbot is seen as a handy tool by employees, and they’re not worried about losing their jobs to AI.
Overall, the banking industry is embracing AI more and more, especially the big banks. But asset managers, traders, and insurance companies are also bringing AI into their work to make customer service better and run things more smoothly.
Morgan Stanley’s adoption of AI, exemplified by their innovative chatbot, reflects a broader trend in the finance industry. While AI enhances efficiency and services, human advisors remain central to investment guidance. This integration of technology underscores the ongoing evolution within banking and financial sectors.