**Major Banks Accelerate Adoption of Autonomous Agentic AI**
In a significant shift towards automation, major banks are increasingly integrating digital assistants into their daily operations, focusing on how these autonomous agents interact with both human employees and clients. This trend, driven by competition among financial institutions, aims to enhance efficiency and productivity across various banking functions, including wealth management, client vetting, trading, and treasury operations.
The concept of agentic AI refers to artificial intelligence systems capable of performing tasks with minimal human oversight. According to a June survey conducted by KPMG, 51% of banks are currently piloting AI agents, indicating a growing acceptance of this technology within the industry. Peter Torrente, the US sector leader for banking at KPMG, noted that banks are exploring the roles of human employees in conjunction with these digital agents, identifying which positions may evolve into hybrid roles that combine human and AI capabilities.
Morgan Stanley is one of the banks leading the charge in this area. Koren Maranca, head of Artificial Intelligence for Wealth Management at the bank, announced plans to begin testing digital assistants that will be available to clients around the clock. These AI agents are designed to assist financial advisors by providing reminders and recommendations tailored to client needs, as well as analyzing investments and suggesting strategies for portfolio management.
At BNY Mellon, the integration of digital employees is being approached with a team-oriented mindset. CEO Robin Vince explained that these digital assistants, such as one named Payment Pete, are treated like teammates, complete with login IDs and specific tasks. They operate within the bank’s systems and are overseen by human managers who ensure their performance meets established standards. This collaborative approach aims to enhance operational efficiency while maintaining a level of human oversight.
UBS is also leveraging AI technology to streamline operations. Richard James, head of AI product at UBS, highlighted that financial advisors are supported by agents that send thousands of alerts daily regarding client actions, such as maturing annuities that require reinvestment. These AI agents can gather information from various internal sources, allowing advisors to focus 70% of their time on client interactions rather than routine tasks. Once a decision is made, the AI can execute trades and manage money transfers, further reducing the administrative burden on human advisors.
Goldman Sachs has partnered with Anthropic to develop AI agents capable of handling trading, transaction accounting, and client onboarding, while JPMorgan is exploring the potential of agentic AI in corporate treasury functions. Citi is also preparing to introduce an AI-enabled virtual wealth management team member, reflecting the widespread recognition of the technology's potential across the banking sector.
Despite the advantages presented by agentic AI, the rapid adoption of this technology raises questions regarding accountability and oversight. As banks grant these digital agents access to internal systems, there is a pressing need for regulatory frameworks to ensure safe and responsible use. Maranca from Morgan Stanley emphasized the importance of human oversight, stating that while AI agents will assist in operations, they will not have the autonomy to make critical decisions regarding client portfolios. The bank is committed to maintaining human involvement in essential functions to mitigate risks associated with AI deployment.
Bhavi Mehta, global lead for advanced analytics in financial services at Bain & Company, noted that banks are increasingly recognizing the potential of agentic AI and are actively seeking ways to implement it. However, as investments in technology scale up, bank investors are becoming more discerning about the return on investment (ROI) associated with these expenditures. Torrente highlighted that investors are keen to understand where banks should focus their AI investments to ensure that returns are both evident and scalable.
As the banking industry continues to evolve with the integration of agentic AI, the balance between leveraging technology for efficiency and maintaining human oversight will be crucial. The ongoing developments in this space will likely shape the future of banking operations, influencing how financial institutions interact with clients and manage their internal processes.