Artificial intelligence is expected to significantly disrupt wealth management, as noted by a Microsoft executive. Martin Moeller, head of AI & GenAI for financial services in EMEA at Microsoft, pointed out that AI's capacity to process financial data will streamline services, allowing a few individuals to perform tasks that previously required entire teams in a bank. Moeller emphasized that "Generative AI will reshape the competitive landscape," making market entry more accessible for startups.
Leading companies like Swedish payment service provider Klarna have already started leveraging AI technology from Microsoft's partner OpenAI, resulting in significant efficiencies by replacing the work of hundreds of employees. UBS, the world's largest asset manager, also recognizes AI's potential to enhance productivity, as highlighted by CEO Sergio Ermotti.
Moeller further explained that generative AI will reduce costs for new players in wealth management and could enable banks that were not traditionally engaged in this sector to enter with minimal investment in customer advisors. The shift in customer behavior, particularly with young entrepreneurs managing their investments independently, is also propelling the adoption of AI in the industry.
In response to evolving preferences, many banks are striving to empower customers to utilize AI for consolidating information autonomously. Moeller stressed the importance of customers having access to comprehensive information around the clock, underscoring that AI can also play a role in portfolio construction.
While current AI applications do not provide product advice or make specific investment decisions, the emergence of "agentic AI" that can autonomously make decisions without human intervention is anticipated in approximately two years.