AI has potential to significantly change the way wealth management operates and is delivered.

Artificial intelligence will bring major upheavals to wealth management, according to Microsoft.

AI's ability to pull together vast amounts of financial data will allow just a few people to offer services that previously occupied entire teams in a bank, Martin Moeller, head of AI and GenAI for financial services, EMEA, at Microsoft, was quoted by Reuters as saying last week. 

"Generative AI will reshape the competitive landscape," Moeller said. "AI will, for example, significantly lower the threshold for market entry for startups, similar to what the digitalisation and internet wave did decades ago."

The report noted that since early 2024, Swedish payment service provider Klarna has been using AI with Microsoft's partner OpenAI which performs the work of 700 employees.

According to the report, UBS chief executive Sergio Ermotti said AI could boost productivity and make jobs easier.

This news service is exploring views about the use cases for AI, see here and here for examples. 

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