During periods of market uncertainty, Morgan Stanley will deploy a vast army of artificial intelligence (AI) robots to tell its wealthy clients to remain calm and Hold On for Dear Life (HODL). The robots will craft personalized messages for each wealthy client about why they need to stay in overstretched, central bank driven markets.
When volatility rears its ugly head, Morgan Stanley advisors usually apply a great deal of time and energy in communicating with its clients base on various platforms, including phone and email about why they should HODL. Business Insider says the robotic email messages will “appear like a human wrote them.”
While complex algorithmic trading bots control much of the order flow in markets, it now seems as automation will be applied to sedate the investment bank’s clientele from selling at rich valuations.
Current Shiller PE Ratio: 32.28
Robots are being combined with human advisors to complete just one task — calming customers during a financial storm, said Andy Saperstein, co-head of the New York-based bank’s wealth management unit.
Saperstein addressed an audience at the Deutsche Bank 2018 Global Financial Services Investor Conference on Tuesday, where he announced, Morgan Stanley is leveraging robots to create customized emails for its 16,000 advisors to send to clients during a stock market panics.
Saperstein said within the body of the email, a breakdown of the client’s account will show the impact of what a downturn could mean for their finances. This alleviates time and energy from the advisor and allows them to divert their attention to other things.
“It solves a big problem when clients call up really worried,” Saperstein added.
Saperstein also mentioned the robots will data mine the client’s social media platforms, public databases, and emails to craft the tailored “human-like” message.
“It could say something like “I just noticed that you joined the board of Safe Horizon, wonderful organization, congratulations on that,’” Saperstein said.
“And it appears that the FA took the time to research the effect that day had on every client in their book specifically, because in essence they did, aided by technology.”
Shares of Morgan Stanley have corrected -15 percent from its 52-week high probed in early March. On Tuesday, the stock corrected -6 percent amid a broader financial sell-off. We wonder if the robots have already been triggered warning clients that Morgan Stanley’s stock is nearing a bear market?