AI to Transform Wealth Management, Says Microsoft Executive: Report

Artificial intelligence (AI) is set to transform wealth management by lowering entry barriers for startups and reshaping competition with established banks. “Artificial intelligence will bring major upheaval to wealth management, a Microsoft executive said, according to a Reuters report.

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AI’s Impact on Wealth Management

According to the report, Martin Moeller, head of AI and GenAI for financial services in EMEA at Microsoft, stated that AI’s ability to condense financial data will allow just a few people to offer services that previously required entire teams in a bank. “Generative AI will reshape the competitive landscape. AI will, for example, significantly lower the threshold for market entry for startups, similar to what the digitalization and internet wave did decades ago,” the report quoted Moeller as saying.

AI Adoption in Financial Services

Since early 2024, Swedish payment firm Klarna has been using AI from Microsoft partner OpenAI, automating tasks equivalent to 700 employees. Major financial institutions like UBS also recognize AI’s potential, with CEO Sergio Ermotti noting its role in boosting productivity and making jobs easier.

Moeller reportedly said that generative AI will reduce costs for newcomers, and can also help family offices—private wealth managers for the super-rich—that compete with wealth managers.

“Banks that have so far been barely active in wealth management could enter the business with the help of AI without having to invest much in customer advisors,” he said, according to the report.