AI to reshape and broaden access to wealth management, Microsoft exec predicts

The wealth management industry is experiencing rapid technological change as artificial intelligence capabilities expand beyond basic automation, according to Martin Moeller, the company’s head of AI and GenAI for financial services in EMEA. Microsoft‘s leadership in enterprise AI positions them to offer unique insights into how AI will reshape financial services, particularly in wealth management.

Current state of AI in finance: AI technologies are already making significant impacts in the financial sector, with companies like Klarna demonstrating substantial efficiency gains through automation.

• Swedish payment firm Klarna has automated work equivalent to 700 employees using OpenAI’s technology
• Major institutions like UBS are actively incorporating AI to enhance productivity and streamline operations
• Traditional banks are using AI tools to help customers independently consolidate financial information

Market disruption potential: AI is poised to dramatically lower barriers to entry in wealth management, creating new competitive dynamics in the financial services industry.

• The technology enables small teams to offer services that previously required large banking operations
• Family offices and wealth management startups can now compete more effectively with established institutions
• Traditional banks with limited wealth management presence can enter the market with minimal investment in human advisors

Customer behavior shifts: A new generation of investors is driving changes in how wealth management services are delivered and consumed.

• Young entrepreneurs increasingly prefer self-directed investment management
• Clients expect 24/7 access to complex financial information
• Portfolio construction can now be handled by conventional AI systems
• Current AI systems do not yet provide specific investment advice or product recommendations

Future developments: The next evolution in AI technology could fundamentally change how investment decisions are made.

• “Agentic AI” systems capable of independent decision-making are expected within two years
• These advanced systems could operate without human oversight
• The development could further democratize access to sophisticated wealth management services

Looking ahead – transformative potential: While AI promises to democratize wealth management services, questions remain about regulatory oversight and client acceptance of fully automated financial decision-making systems. The transition from human-led to AI-augmented wealth management will likely require careful balance between innovation and trust-building with clients.