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Wall Street banks ramp up digital assistants in bid to win productivity race

Created at 13 Jul · 9:06 AM1 source↑ Market-relevant
IN SHORT

Major banks are accelerating the integration of AI-powered digital assistants into their daily operations, aiming to boost productivity and gain a competitive edge. These agents are being developed to perform tasks with minimal human supervision across various functions, from client interaction to trading and accounting.

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Key Numbers

51%of banks piloting AI agents
70%of advisor time freed for client interaction

Who's Involved

Peter Torrente
U.S. sector leader for banking at KPMG
Koren Maranca
Head of Artificial Intelligence for Wealth Management at Morgan Stanley
Robin Vince
CEO of BNY
Richard James
Head of AI product at UBS
Bhavi Mehta
Global lead for advanced analytics in financial services at Bain & Company

↳ Why This Matters

The widespread adoption of agentic AI by major banks signifies a significant shift in financial services operations, promising increased productivity and efficiency but also raising critical questions about human oversight, risk management, and return on investment for these advanced technologies.

Key facts

  • Major banks are accelerating the adoption of agentic AI to increase productivity.
  • AI agents are being integrated into functions such as wealth management, client vetting, trading, and treasury.
  • Morgan Stanley will test client-facing digital assistants this summer.
  • BNY assigns login IDs and human managers to its digital employees.
  • UBS states AI allows financial advisors to spend 70% of their time with clients.
  • Goldman Sachs is collaborating with Anthropic to develop AI agents for trading and accounting.
  • Investor scrutiny of AI spending ROI is prompting banks to focus on areas with evident returns.

Major Wall Street banks are significantly increasing their use of digital assistants, also known as agentic AI, in an effort to boost productivity and gain a competitive advantage. These AI systems are designed to perform tasks with minimal human supervision, impacting functions ranging from wealth management and client vetting to trading and treasury operations.

KPMG reports that 51% of banks are currently piloting AI agents, indicating a widespread industry trend. Morgan Stanley is preparing to test digital assistants that can interact with clients at any time, while also using agents to support financial advisors with tasks like analyzing investments and building portfolios. At BNY, digital employees are integrated as team members with their own login IDs and are overseen by human managers for training and quality control, with CEO Robin Vince likening the process to performance reviews.

UBS has implemented agents that send thousands of daily alerts to financial advisors, freeing up approximately 70% of their time for client interaction by automating routine tasks. Goldman Sachs is collaborating with Anthropic to develop AI agents for trading, transaction accounting, and client vetting. JPMorgan is exploring the transformative potential of agentic AI in areas like corporate treasury, and Citi is preparing to launch an AI-enabled virtual wealth management team member.

As banks scale up their AI investments, investors are increasingly focused on the return on investment, prompting financial institutions to prioritize AI applications with evident and scalable returns. However, the growing adoption of agentic AI also raises concerns about accountability and oversight. Banks are implementing guardrails and ensuring human involvement in critical functions, particularly when AI touches customer interactions, to mitigate risks.

Frequently asked questions

Agentic AI refers to artificial intelligence that can accomplish tasks with minimal human supervision, often acting autonomously on behalf of users.

Major banks including Morgan Stanley, BNY, UBS, Goldman Sachs, JPMorgan, and Citi are actively incorporating or planning to use agentic AI.

The primary benefits include increased productivity, automation of routine tasks, enhanced client interaction, and improved efficiency in functions like trading and accounting.

Concerns include accountability, oversight, data privacy, and ensuring human involvement in critical decision-making processes, especially when AI interacts with clients.

What Happens Next

01Morgan Stanley will begin testing client-facing digital assistants later this summer.
02Citi is preparing to roll out its AI-enabled virtual wealth management team member.

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Cadence

How It Developed

Banks are increasing their use of agentic AI to enhance productivity.
KPMG survey shows 51% of banks are piloting AI agents.
Morgan Stanley plans to test client-facing digital assistants this summer.
BNY treats digital employees as teammates with login IDs and human managers.
UBS financial advisors use agents for thousands of daily alerts and task completion.
Goldman Sachs is developing agents with Anthropic for trading and accounting.
JPMorgan sees corporate treasury as a key area for AI transformation.
Citi is preparing to roll out an AI-enabled virtual wealth management team member.

Sources

T1
Wall Street banks ramp up digital assistants in bid to win productivity raceReuters

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