The new AI chatbot will allow Morgan Stanley cater more effectively to its growing wealth division and the teeming clients there.
American financial services company Morgan Stanley is looking to introduce an artificial intelligence (AI) chatbot in interactions with its wealthy clients. Morgan Stanley developed the chatbot in collaboration with OpenAI, the company behind ChatGPT.
Both Morgan Stanley and OpenAI have been working on the AI chatbot for a while now. Morgan Stanley is now ready to launch the AI tool after a testing period that lasted a few months and involved 1,000 financial advisers.
Morgan Stanley will first seek permission from its wealthy clients. These customers will enjoy a chatbot that can create a summary of the conversation between the client and the chatbot, and also write a follow-up email with suggestions on the next steps to take. In addition, Morgan Stanley’s AI chatbot will be able to schedule appointments on the client’s behalf. It will also help financial advisers to oversee client taxes, inheritances, and retirement savings. Furthermore, the tool will benefit bankers who can use it to quickly find specific documents or important research instead of manually locating one among thousands.
According to Morgan Stanley’s Chief Information Officer of Wealth and Investment Management, Sal Cucchiara, the impact of AI is not only significant but may be comparable to that of the internet. Cucchiara met with executives at OpenAI last year before ChatGPT became popular. Morgan Stanley’s Co-President and Head of Wealth Management Andy Saperstein then set up a meeting with OpenAI CEO Sam Altman and technical staff member Boris Power. Speaking on MorganStanley’s collaboration with OpenAI, Cucchiara said:
“It quickly became clear we needed to partner with them, they were far ahead of everybody else.”
Morgan Stanley Joins Other Banks Trying Out AI
Morgan Stanley is pushing deeply into AI usage as the company tries to improve its wealth division. For Q2, Morgan Stanley’s net revenue jumped 16%, with new client assets growing $90 billion.
Morgan Stanley is not the only major financial services company driving internal AI adoption. Earlier this year, Goldman Sachs (NYSE: GE) began testing AI use to help developers write code. According to Chief Information Officer Marco Argenti in March, Goldman’s AI tool is in the proof of concept stage and not yet ready for production. At the time, Argenti described AI as “one of the biggest disruptions” he’d ever seen, also comparing the tech with apps, the cloud, and the internet. He added that the tech will generate and test code on products but did not specify what division the tool would help. He also didn’t specify any products.
Bank of America also announced that it is using AI and the metaverse to improve staff onboarding. According to the bank, artificial intelligence technology helps simulate certain situations to properly train new employees on handling specific problems. The process involves using virtual reality gadgets and simulations covering everything from customer complaints to security threats. At the time, Bank of America had used the process for more than 200,000 new and existing staff. Bank of America’s Head of The Academy, John Jordan, said the simulations make a new employee experienced.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
