Morgan Stanley CEO dubs AI a ‘weapon’ against financial crimes

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on Dec 6, 2023
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  • Morgan Stanley CEO James Gorman testified before Congress today.
  • He reiterated the bank's commitment to a secure financial system.
  • Morgan Stanley stock is currently down 20% versus its YTD high.

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Artificial intelligence could play a meaningful role in keeping financial crimes in check, says James Gorman – the Chief Executive of Morgan Stanley (NYSE: MS).

Morgan Stanley CEO testifies before Congress

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The Wall Street bank now spends close to $1.0 billion on its cybersecurity efforts aimed at keeping the financial system safe – versus just $50 million in 2010 when Gorman took over as the top boss.

I think the advances in AI will be a real strategic weapon in this regard [stopping bad actors].

The Chief Executive made those remarks as he testified before Congress on Wednesday.

It’s not the first time that Morgan Stanley has touted the role of AI in the financial space. In September, the New York-listed firm also launched an artificial intelligence-enabled assistant for financial advisors (find out more).

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Morgan Stanley is committed to security

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Morgan Stanley “works closely with intelligence agencies” to protect its clients from financial harm, added James Gorman on Wednesday.  

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He also confirmed that the financial services behemoth relies on an “enormous compliance team” to restrict money laundering – thereby preventing hostile governments or organisations from penetrating the banking network.  

Note that James Gorman will step down as the Chief Executive of Morgan Stanley at year end. The investment bank has already named Ted Pick its new lead to take the helm on January 1st.

Morgan Stanley is scheduled to report its financial results for the fourth quarter in mid-January. Consensus is for it to earn $1.23 a share versus $1.31 per share a year ago.

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