The increasing use of artificial intelligence in financial systems is driving a shift towards a model where machines execute transactions on a massive scale, posing new challenges related to control, oversight, and infrastructure, according to Microsoft and Chainalysis executives. Bill Borden, Microsoft's corporate vice president of worldwide financial services, stated that legacy systems will face growing pressure as transaction demands become more intricate.
The breaking point occurs when latency, scale, and complexity begin to hinder a company's ability to compete, forcing firms to reassess their system architecture. Borden emphasized that the focus has shifted from capability to trust, with the primary concern being whether technology can be trusted and audited.
Microsoft is developing tools to facilitate this transition, including systems that assign identities and permissions to AI agents and track their actions. Jonathan Levin, co-founder and CEO of Chainalysis, noted that the crypto sector has already demonstrated a working model of automated finance, with blockchain networks processing large volumes of transactions through smart contracts and software-driven wallets.
Both executives anticipate a hybrid system in the future, with Levin predicting that most commerce will be settled on public infrastructure and Borden envisioning a more integrated approach that links public blockchains, private networks, and existing systems.