The ways that banks, asset managers ‘can really leverage’ AI

Yahoo Finance Video and Julie Hyman

Mon, February 23, 2026 at 8:00 PM GMT+9

In this video:

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As software stocks attempt to recover from last week’s sell-off, Wall Street seeks to better understand the possible impacts of AI on other industries, including banking (XLF) and wealth management.

Citi Wealth Chief Investment Officer Kate Moore comments on the ways asset managers may adopt artificial intelligence tools and utilize them to their advantage.

To watch more expert insights and analysis on the latest market action, check out more Morning Brief.

Video Transcript

00:00 Speaker A

circling back to the banks for just a moment. I mean, as we know, part of that psychological hit has been, oh my gosh, AI is going to come in and replace people. I mean, you’re in that business, you know.

00:13 Speaker B

I am in the business.

00:14 Speaker A

Um and um I I I don’t think two AIs are going to be talking to each other in front of people like this anytime soon. one would hope.

00:23 Speaker B

I can I can say most of our clients uh do want that high touch experience still and don’t don’t want a Kate Avatar. Um you know, but maybe they will.

00:27 Speaker A

Yes, I would think so, especially. Yes.

00:32 Speaker A

But I mean, but there are, you know, you’re obviously in the high net worth business. So that is a particular part of it.

00:37 Speaker B

Yeah, the wealth business actually runs all the way to, you know, consumer. So it it is an incredible spectrum of clients we have globally. there is obviously the ultra high net worth in the family office space all the way to consumer.

00:41 Speaker A

Gotcha.

00:50 Speaker A

Gotcha. So, you know, so what I guess to what degree can businesses like that or asset management much more broadly be, you know, dislocated as a result of this?

01:10 Speaker B

Look, I again, like any industry, I think the investment in AI tools and technology and then training up people to leverage these tools is is existential. Like this is a make the the investment, make the time and make the sort of um focus on the people to use these tools like your number one priority. And we talked about this a lot in terms of our leadership team. But it’s about upskilling people, but also not just replacing what they’re doing on a daily basis with just an AI tool, but trying to think bigger. Like how do I disrupt everything I do? How do I disrupt the way I analyze companies? How do I disrupt the way, you know, I’m taking in economic data? Um, and so there will be naturally some shifts in head count. Um, some of it will be people moving into different types of jobs, uh, because new things will open up. And some of it will be we don’t need as many people, you know, coding data in, for example. Um, and so that that’s left to be seen. But there are other things really great for the banks and all these professional services firms, I think that can really leverage AI, which is that, you know, there’s a regulatory, um, cycle here that’s quite positive. Deregulation is obviously very supportive of the banks. That’s why we saw that big push in the second half of 2025. and then also deal activity. You know, despite the fact that consumers feel a little bit uncertain and there’s like that, you know, itchiness in the market. we are seeing seeing much better deal activity, more mergers, more, you know, companies come to market, more interesting debt deals, all these types of things. And that’s obviously very supportive of the banks. And frankly, like a lot of other, I mean, I mean, like fewer other sectors I would say, the banks have done a lot of work to get their balance sheets and their businesses in a cleaned up place even before the AI disruption and the regulation and the deal outflow. So, you know, it feels like this is the best kind of fundamental position I’ve seen in the last 15 years.

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