Autonomous AI agents are on the cusp of revolutionizing the financial services industry. These next-generation autonomous AIs, capable of complex tasks, are set to transform how banks, hedge funds, insurance companies, and traders operate.
AI Agents: A New Reality
AI agents represent the latest advancements in business technology. They are AI applications that can learn to execute complex, multi-step processes with minimal human input. Unlike a conventional AI chatbot, such as ChatGPT, which can generate ideas, an agentic AI can perform a range of tasks. For example, they can:
- Plan meal schedules and manage grocery shopping and delivery.
- Plan and book vacations, including flights and accommodation from multiple providers.
- Manage household tasks, interacting with cameras and robotic appliances.
This capability stems from their ability to adapt tactics and goals during the “inference” stage, where the AI is actively working on a task. In contrast, non-agentic generative AI chatbots learn only during their training phase. Furthermore, AI agents can learn to interact with external systems, such as through computer vision to “see” how a system works, a capability that current genAI chatbots cannot achieve without API access.
Applications in Financial Services
In financial services, AI agents are poised to function as autonomous analysts and investment advisors, evaluating market conditions, risk factors, and investment strategies in real-time to identify opportunities. They don’t need explicit programming to do so; instead, they independently identify effective ways to maximize financial gains, dynamically adjusting strategies as new opportunities arise.
Similarly, for risk assessment and credit scoring, AI agents will surpass traditional AI algorithms by identifying the best sources of financial or behavioral data in real-time, even detecting risks and threats they weren’t originally programmed to find. A significant part of the financial services workload involves compliance and regulatory requirements. Here, agents can autonomously scan for risks, constantly updating themselves on changes to regulations and statutory obligations. While an AI algorithm might analyze a document for compliance, an AI agent can create a strategy to ensure all an organization’s documentation complies, establishing processes to maintain that compliance.
Moreover, these agents will help financial services companies create new customer experiences. They can develop highly personalized services that greatly surpass traditional chatbots by learning individual requirements, adapting the delivery of services to fit each customer’s needs.
According to research by Citi, banks are historically the biggest spenders on technology outside the tech industry, and this trend is likely to continue with genAI and agentic AI.
The Future of AI Agents
Agentic AI is still in its early stages of development. Experts predict that current-generation agents will appear basic compared to those emerging in the next few years. Agentic AI is often viewed as a step toward artificial general intelligence (AGI), the goal of creating machines that can apply their skills and knowledge to complete any task.
As we approach that goal, AI agents in financial services will become capable of increasingly complex tasks, leading to potential job losses. However, new jobs will emerge for those who can work with AI. Society will also need to address numerous other challenges, including establishing frameworks to ensure that AI agents operate ethically, transparently, and with appropriate accountability. Cybersecurity will also be a major concern, as financial institutions adopt agentic AI.
If handled correctly, the widespread adoption of agentic AI in finance could usher in a transformative era that increases access to fintech services and enables fairer insurance and credit scoring, ultimately benefiting everyone.
