Morgan Stanley is preparing to debut an innovative generative artificial intelligence chatbot later this month, developed in collaboration with OpenAI, according to a report by Reuters. The bank has been testing this AI tool with approximately 1,000 financial advisers for several months, although specific details of the program have not been disclosed.
The primary objective behind the chatbot is to enhance the efficiency of financial advisers’ interactions with clients. With clients’ permission, the AI bot is designed to perform various tasks, such as creating meeting summaries, drafting follow-up emails suggesting next steps, updating the bank’s sales database, scheduling follow-up appointments, and even learning to assist advisers in managing clients’ financial matters, including taxes, retirement savings, and inheritances.
Additionally, Morgan Stanley employees will be able to utilize the chatbot to quickly access research or forms, eliminating the need to sift through extensive document archives.
Morgan Stanley’s Chief Information Officer of Wealth and Investment Management, Sal Cucchiara, believes that the impact of AI in this context will be profound and potentially comparable to the transformative impact of the internet. He was quoted in the report as saying, “The impact (of AI) will be very significant.”
Cucchiara also highlighted the pivotal role of OpenAI in this endeavor, stating that the partnership became evident after their initial discussions, as OpenAI was significantly ahead of other technology vendors.
The partnership between Morgan Stanley and OpenAI was formalized last summer, granting the bank preferred access in product development for wealth management. This collaboration was celebrated during a dinner hosted by Andy Saperstein, Morgan Stanley’s co-president and head of wealth management, who is also a potential candidate for the bank’s next CEO.
While the AI chatbot will provide valuable insights and administrative support to financial advisers, it’s important to note that investment advice will remain the responsibility of human professionals. Sal Cucchiara emphasized that the adviser remains at the center of the process, and employees view the technology as a helpful tool rather than a replacement for their roles.
This AI initiative is part of Morgan Stanley’s broader strategy to bolster its wealth division. The company has seen a surge in net revenue and new client assets in recent quarters, aiming to reach $10 trillion in assets under management. Other major financial institutions, including JPMorgan Chase and Bank of America, have also been actively exploring the integration of AI technology into their operations.
The partnership between Morgan Stanley and OpenAI represents a significant step forward in the financial services industry’s adoption of AI to enhance client services and operational efficiency while preserving the human touch in investment decision-making.
