New York – Wealthy clients seeking investment advice from Morgan Stanley bankers can now expect a novel experience as the financial giant prepares to launch a cutting-edge chatbot for wealth management. Following successful trials involving 1,000 financial advisers over several months, Morgan Stanley will debut its generative artificial intelligence (AI) bot this month, developed in partnership with OpenAI, the creators of ChatGPT. While specific details of the program have yet to be disclosed, this innovative tool promises to revolutionize the way the bank serves its clients.
With clients’ explicit permission, this chatbot will play a multifaceted role, encompassing various aspects of the client-adviser interaction. The bot will create comprehensive meeting summaries, draft follow-up emails suggesting next steps, update the bank’s sales database, schedule future appointments, and gradually acquire the capability to assist advisers in managing clients’ financial affairs, including areas such as taxes, retirement savings, and inheritances.
In addition to enhancing the client experience, the chatbot will also serve as a valuable resource for Morgan Stanley’s bankers, allowing them to swiftly access research materials and forms without the need to sift through extensive document archives. This move into AI is hailed by Sal Cucchiara, Morgan Stanley’s Chief Information Officer of Wealth and Investment Management, as “very significant,” drawing parallels to the transformative impact of the internet.
Cucchiara, responsible for scouting potential tech partners in Silicon Valley, first encountered OpenAI executives in 2022, before the widespread adoption of ChatGPT. “It quickly became clear we needed to partner with them; they were far ahead of everybody else,” he said.
The partnership between Morgan Stanley and OpenAI was solidified in the summer of 2022. The agreement grants Morgan Stanley preferred access to AI product development specifically tailored to wealth management. The collaboration was sealed during a celebratory dinner hosted by Andy Saperstein, Morgan Stanley’s Co-President and Head of Wealth Management, who is also a candidate for the bank’s next CEO.
OpenAI declined to comment on the partnership.
Notably, despite the introduction of AI into the wealth management landscape, Morgan Stanley emphasizes that investment advice will remain firmly within the realm of human advisers. “The adviser is still at the center,” emphasized Cucchiara. Employees at the bank currently view this technology as a helpful tool and do not express concerns about being replaced by bots.
Morgan Stanley’s AI initiative is a pivotal component of its broader strategy to bolster its wealth division, which achieved a remarkable 16% increase in net revenue in the second quarter, coupled with $90 billion in growth in new client assets. CEO James Gorman, who has spearheaded numerous initiatives to channel more resources into the wealth business, aspires to reach an impressive $10 trillion in assets under management.
Morgan Stanley is not alone in its pursuit of AI-driven enhancements. Other financial institutions, such as JPMorgan Chase and Bank of America, are also actively investing in AI applications to advance their services. Notably, Bank of America’s virtual assistant, Erica, has engaged in over a billion interactions with clients since its introduction in 2018.
Beyond the world of banking, Moody’s Analytics is collaborating with OpenAI and Microsoft to develop a research assistant for client use, reflecting the broader trend of AI integration across the financial industry.
According to Michael Abbott, Global Banking Lead at Accenture, large banks are at the forefront of AI adoption, but asset managers, traders, and insurers are also swiftly incorporating AI into their operations. “We’re beginning to see customer services led by artificial intelligence spread among the largest banks,” said Abbott, who is currently engaged in numerous case studies with banks exploring AI integration.
Morgan Stanley’s entry into the AI-driven wealth management arena signals a new chapter in the intersection of technology and finance, promising to enhance client experiences while retaining the indispensable role of human advisers. As AI continues to reshape the financial landscape, Morgan Stanley’s strategic partnership with OpenAI represents a noteworthy milestone in this transformative journey.
