The increasing use of artificial intelligence in financial systems is driving the industry towards a model where machines carry out transactions on a large scale, posing new challenges related to control, oversight, and infrastructure, according to executives from Microsoft and Chainalysis. Bill Borden, Microsoft's corporate vice president of worldwide financial services, stated that legacy systems will face growing pressure as transaction demands become more complex, with the tipping point occurring when latency, scale, and complexity start to impact a company's ability to compete. This forces firms to reevaluate how their systems are built.
While automation has long been a part of finance, Borden noted that the focus is now shifting from capability to trust, with the question being whether technology can be trusted and audited, rather than just its ability to automate tasks. Microsoft is developing tools to manage this transition, including systems that assign identities and permissions to AI agents and track their actions.
Jonathan Levin, co-founder and CEO of Chainalysis, pointed out that the crypto sector already provides a working model of automated finance, with blockchain networks processing large volumes of transactions through smart contracts and software-driven wallets. Looking ahead, both executives expect a mix of systems to coexist, with Levin predicting that the majority of commerce will be settled on public infrastructure in 10 years, while Borden envisioning a more integrated approach that links public blockchains, private networks, and existing rails.