Morgan Stanley has tapped firm veteran Jeff McMillan to guide its artificial intelligence implementation as banks further explore uses for what some have deemed “the new electricity.”
The position, head of firmwide AI, is a new role at Morgan Stanley, though the bank — and McMillan, in particular — have been immersed in AI for some time. McMillan oversaw the development of AI @ Morgan Stanley Assistant, a virtual assistant for financial advisers and bankers powered by OpenAI, which launched in the fall.
McMillan’s appointment was announced Thursday in an internal memo.
“In his new role, Jeff will coordinate across the Firm to ensure we have the appropriate AI strategy and governance in place,” wrote co-presidents Andy Saperstein and Dan Simkowitz. “In doing so, he will partner with the business units and infrastructure areas to identify and prioritize AI opportunities; help position the Firm within the flow of AI development across the industry and ensure that Morgan Stanley continues to be a well-respected innovator in AI.”
Users of the bank’s AI assistant reported its “meaningful incremental value,” McMillan said in January.
“Since rolling out the Assistant we have seen significant increases in accuracy, coupled with significant decreases in incomplete answers, when compared with our previous knowledge management process,” he said in a statement emailed to Banking Dive. “Further, the Assistant has reduced inquiry fulfillment times for Morgan Stanley’s Financial Advisor population, further driving efficiency and productivity.”
A Wall Street giant creating a role solely focused on AI is an ode to the technology’s growing importance in the banking sphere, with other banks sure to follow suit. AI has alternately been called “the new electricity,” “the new internet,” and “the new Industrial Revolution.”
In a study released in October during Money20/20, Zac Maufe, global head of regulated industries at Google Cloud, said generative AI “can represent a massive productivity and operational efficiency opportunity” and “help create hyper-personalized digital experiences that consumers are demanding,” especially as banking consumers become more comfortable with using the technology.
At Morgan Stanley, McMillan will report directly to Saperstein and Simkowitz and will collaborate on AI strategy execution with Mike Pizzi, head of U.S. banks and technology; Sid Visentini, head of firm strategy; and Katy Huberty, head of global research.
Huberty and McMillan will co-chair the firmwide AI steering group.
McMillan joined Morgan Stanley in 2009 and became head of investment platforms in the bank’s wealth management unit, according to his LinkedIn profile. He had served as the bank’s chief analytics and data officer since 2016. Before moving to Morgan Stanley, McMillan spent eight years as in Merrill Lynch’s research unit, according to LinkedIn.
