Morgan Stanley to soon unveil its AI chatbot for bankers
What's the story
Morgan Stanley is set to launch a generative artificial intelligence chatbot, this month. It has been in testing with 1,000 financial advisers for quite some time now.
Developed in partnership with OpenAI's ChatGPT, the AI chatbot from the American multinational investment bank will help assist its financial advisers in quickly finding the required research documents or forms.
This will prevent them from sifting through thousands of pages and make their work more efficient.
Scenario
AI boosts ambitious wealth goals
Morgan Stanley's AI initiative is part of the bank's strategy to drive its wealth division.
The bank's net revenue surged 16% to a record in the second quarter and new client assets grew $90 billion. Now, CEO James Gorman aims to reach $10 trillion in assets under management.
The AI chatbot will provide insights and administrative support to financial advisers, while investment advice will remain the purview of humans. It may also help crunch numbers, analyze transactions, and detect fraud.
Details
The bank wants to streamline work with AI-driven efficiency
The AI initiative is expected to have a significant impact on Morgan Stanley.
In addition to an AI chatbot, the bank is also developing technology that can create a meeting summary, draft follow-up emails, update the sales database, and schedule appointments.
It will also learn how to help advisers manage clients' finances in areas including taxes, retirement savings, and inheritances, all eventually with clients' permission.
Further details of this program are yet to be revealed.
Insights
Morgan Stanley signed a deal with Open AI last year
In 2022, Sal Cucchiara, Morgan Stanley's chief information officer of wealth and investment management, met OpenAI executives, before ChatGPT became mainstream.
"It quickly became clear we needed to partner with them, they were far ahead of everybody else," he said.
Later, Andy Saperstein, Morgan Stanley's co-president and head of wealth management, discussed a partnership with OpenAI CEO Sam Altman, which offered the investment bank preferred access to OpenAI's resources.