Author: Cindy Xue
Graphics: Nathan Nyaung
Finance is getting an upgrade — AI is changing how we save, invest, and spend.
The Future of AI in Finance
AI in Wealth Management
What is Wealth Management? Wealth management is an investment advisory service that uses financial services to address the needs of affluent clients. Essentially, it’s like having a personal financial coach who continuously helps you grow and protect your money. It helps individuals plan their financial future by helping to manage their investments and savings.
Picture a future where your financial advisor can easily analyze global market trends and recommend a tailored investment strategy in just a couple of seconds. You don’t have to picture this future anymore because it’s happening right now in the present.
Martin Moeller, Microsoft’s Head of AI & GenAI for Financial Services, describes how AI is already transforming wealth management, stating that, “AI’s ability to condense financial data will allow just a few people to offer services that previously occupied entire teams in a bank.”Klarna (a financial services company) is shifting towards AI. Their AI system performs work equivalent to that of 700 employees, cutting costs and increasing efficiency, according to Forbes. The Financial Times posts that UBS is also leaning into AI to boost productivity and streamline financial decision-making. And while today’s AI can’t yet make fully independent investment decisions, experts predict that “agentic AI” will become a reality in the next two years.
Automated Investing: The Power of AI in Robo-Advising
What is a Robo-Advisor? A robo-advisor is an automated digital platform that provides financial planning and investment management services using algorithms and AI, often at a lower cost than human advisors.
Traditional investing often requires expertise, time, and — let’s be honest — a fair amount of stress. Enter robo-advisors: AI-powered platforms that manage portfolios with machine precision, minus the emotional rollercoaster.
According to Evince Development, Robo-advisors like Betterment and Wealthfront use AI to tailor investment strategies based on risk tolerance, goals, and market conditions.
Why Robo-Advisors Are a Game Changer:
- 24/7 monitoring: Your investments are constantly optimized. Unlike people, artificial intelligence works around the clock without the need for sleep.
- Bias-free decisions: Robo-advisors are not affected by panic-selling or overconfidence, every decision is a result of a data-driven strategy.
- Lower costs: Traditional advisors charge hefty fees, but robo-advisors make wealth management accessible for as little as $10 a month.
AI-Powered Fintechs to Watch in 2025
What is Fintech? Fintech (short for financial technology) refers to the use of digital solutions, software, and AI to improve and automate financial services, from banking to investing and payments.
The fintech industry is brimming with startups leveraging AI to make finance easier, smarter, and more secure. Here are some of the most innovative companies redefining the game:
Debt Management and Financial Assistance:
- Clerkie — Think of this as AI-powered financial therapy, automating debt repayment solutions for consumers.
Revenue and Loan Analysis:
- BeatBread — Uses AI to analyze revenue potential for artists and music industry professionals, helping them secure funding.
- Upstart — Moves beyond traditional credit scores, using machine learning to assess loan applicants.
Fraud Detection and Compliance:
- Fintonic – AI-powered fraud detection that keeps your money safe.
AI in Personal Finance
AI is not just about automation — it’s about personalization. More financial institutions are using AI to provide tailored recommendations, helping individuals achieve their financial goals.
AI-Powered Financial Planning Tools:
- Morgan Stanley’s AI-driven Wealth Management Platform — Offers hyper-personalized investment advice.
- Albert — AI-powered financial assistant that automates budgeting and savings.
- Cleo — An AI chatbot that analyzes spending habits and suggests ways to save.
Take-Home Points
- Robo-advisors like Betterment and Wealthfront use algorithms to build and manage personalized portfolios.
- Robo-advisors offer benefits like 24/7 monitoring, lower fees, and bias-free decision-making.
- Fintech startups are using AI for debt solutions, fraud detection, identity verification, and smarter loan assessments.
- Companies like Upstart, BeatBread, Clerkie, and Trulioo are pushing AI deeper into everyday financial services.
- AI is making personal finance more accessible with tools like Albert, Cleo, and Morgan Stanley’s AI-driven platform.
- While AI doesn’t yet replace human advisors fully, “agentic AI” may arrive within a few years.
- Overall, AI’s influence is growing — driving efficiency, reducing costs, and creating personalized experiences across finance.