Morgan Stanley (MS) expects the rollout and refinement of advanced “Agentic AI” solutions to continue as a major productivity driver throughout 2026 and beyond, moving from information retrieval to autonomous execution

• Aims to reach USD 10tln in client assets and achieve a 30% pre-tax margin; exited FY25 at USD 9.3tln AUM and 29% margin, >30% in H2.
• Rolling out “branch operations” AI agent to automate tasks like moving money, opening accounts, and changing beneficiaries, freeing service associates for higher-value client work.
• Introducing a 24/7 “team member” AI agent for direct client interaction: initial info retrieval features now live; next phase to enable money movements (wires, bill payments, etc.).

Morgan Stanley's focus on advanced "Agentic AI" solutions suggests a strategic pivot towards automation, enhancing productivity and operational efficiency. This initiative aims to significantly increase client assets while potentially improving margins, which could position MS favorably within the competitive landscape of investment banking and financial services. The broader implications for the market include an increased focus on AI-driven efficiency across the sector, likely giving rise to similar moves from competitors.