How Vanguard is Betting Big on AI to Serve Millions
Vanguard, a major player in the investment world, is diving headfirst into AI to keep up with its massive client base. With nearly $12 trillion in assets under management, the company is testing AI tools to enhance client interactions and streamline operations.
AI Chatbot for Client Interactions
One of their recent projects is an AI chatbot that can answer simple questions about account balances and portfolio performance. However, they are cautious about the chatbot's accuracy and are working to prevent misleading responses.
AI Tools Inside the Company
Inside the company, AI is already a big deal. Tools like Microsoft Copilot and AI-powered content creation platforms are being used by employees daily. These tools help with tasks like coding, marketing, and even summarizing meetings.
Vanguard is also using generative AI to create personalized summaries for financial advisors, making it easier to tailor advice to each client's level of financial knowledge.
Focus Areas for AI
The company's focus areas for AI include:
- Improving client experience
- Creating a digital advisor
- Fraud prevention
- Boosting productivity for specific roles like financial advisors and software developers
Despite high usage rates among employees, measuring the return on investment remains a challenge. However, the company believes that AI is already saving time and improving efficiency.
Tech Overhaul and Investment in AI Startups
Vanguard's CIO, who joined in 2019, has been leading a major tech overhaul, including migrating to the public cloud and launching new digital platforms. He emphasizes the importance of empowering teams to use AI creatively and reimagine their workflows.
The company is also investing in external AI startups and consolidating data teams to better measure the value of their investments.
