AI Chatbots: Transforming Wealth Management Through Innovation

The May 2025 issue of The Oasis Group’s Peaks Perspective newsletter is our first edition under this new name, which was previously known as Vantage Point. While the name and look are changing a bit, you can still expect the same insightful content, updates, and stories you’ve come to enjoy!

The wealth management industry is early in the beginning of its technological transformation driven by artificial intelligence (AI). AI note takers were the technology advancement of 2024 and AI chatbots are the advancement of 2025.

Chatbots are intelligent virtual assistants capable of interacting with financial advisors, team members, and clients to answer specific questions on client accounts. As these technologies continue to evolve, wealth management firms that embrace AI chatbots stand to gain a significant competitive advantage.

In simple terms, a chatbot is a computer program designed to simulate conversation with human users. These AI-powered tools can understand natural language, answer questions, and perform tasks based on user input. Chatbots are becoming increasingly sophisticated, capable of learning from experience and adapting to individual user preferences.

Chatbots offer a range of compelling benefits for wealth management firms, including:

• Enhanced Client Engagement: Chatbots provide 24/7 availability, allowing users to access information and support at any time, regardless of their location. This instant accessibility can significantly improve client satisfaction and loyalty.
• Improved Efficiency: By automating routine tasks such as answering frequently asked questions and processing simple transactions, chatbots free up financial advisors to focus on more complex and high-value activities. This increased efficiency can lead to cost savings and improved productivity.
• Personalized Advice: Equipped with access to client data and sophisticated algorithms, chatbots can deliver tailored financial advice based on individual circumstances and goals. This level of personalization can help clients make informed decisions and achieve their financial objectives.

Several wealth management firms have already launched their own AI chatbots.

Bank of America: “Erica”

Bank of America’s “Erica” is a well-established, AI-powered virtual financial assistant available within the bank’s mobile app. Launched in 2018, Erica leverages natural language processing, machine learning, and predictive analytics to provide a wide range of services, including:

• Answering customer questions about balances, transactions, and bills
• Assisting with money transfers, payments via Zelle, and scheduling appointments
• Monitoring recurring charges and alerting users to potential overdrafts
• Offering personalized financial advice and proactive insights based on spending patterns
• Helping with card management (activation, replacement, blocking)

Erica has handled over a billion interactions, serves more than 32 million clients, and operates 24/7, significantly improving customer engagement, operational efficiency, and satisfaction. The assistant continuously learns from user interactions, enhancing its ability to provide relevant and timely financial guidance.

Morgan Stanley: AI @ Morgan Stanley Assistant (AIMS) and Debrief

Morgan Stanley has developed and widely deployed an AI chatbot called AI @ Morgan Stanley Assistant (AIMS), built in partnership with OpenAI. This internal tool is used by nearly all the bank’s 16,000 financial advisors to quickly answer client queries, access firm-specific research, and generate personalized communications. AIMS is designed specifically for wealth management, referencing only Morgan Stanley’s internal content and securely handling sensitive financial data.

Carson Group: “Steve”

Carson Group recently released ‘Steve’, an AI chatbot designed to help financial advisors manage client accounts and provide personalized advice. The question-and-answer tool was developed with the goal of allowing advisors to spend less time on administrative tasks and more time on meaningful interactions with clients. Carson Group expects to increase the number of households that each advisor can serve and to save thousands of hours for advisory teams.

Need for Clean Data

The effectiveness of these chatbots hinges on access to a clean and comprehensive data lake. A data lake is a centralized repository of structured and unstructured data, providing the raw material for AI algorithms to learn and generate insights. Chatbots are prone to errors and biases without high-quality data, undermining their utility and potentially damaging client relationships.

Large wealth management firms can create proprietary data lakes by combining CRM data with meeting notes and other client interactions. CRM systems store valuable information about client demographics, financial goals, and risk tolerance. Supplementing this data with detailed notes from client meetings from AI note takers can provide a more nuanced understanding of individual needs and preferences. By integrating these disparate data sources, firms can create a holistic view of each client, enabling their chatbots to deliver truly personalized and relevant advice.

The rise of AI chatbots presents a unique opportunity for large wealth management firms to enhance their services and strengthen client relationships. Experimentation is key.

Realizing the full potential of this technology requires a robust data strategy. Wealth management firms should prioritize building comprehensive and clean data lakes to fuel their AI initiatives. Firms who embrace AI chatbots and continuously refining their data strategies can stay ahead of the curve and deliver superior value to their clients.

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