Microsoft says legacy banks are hitting a breaking point as AI takes over the heavy lifting
Microsoft and Chainalysis executives warned that as AI agents begin managing transactions at scale, the financial industry must overhaul its legacy infrastructure to prioritize machine identity and trust.
What to know:
- Financial firms are being pushed toward AI-driven, machine-executed transactions at massive scale, straining legacy systems and forcing a redesign of core infrastructure, speakers from Microsoft and Chainalysis said.
- Industry leaders said the key challenge is shifting from what AI systems can do to whether they can be trusted, audited and controlled in highly regulated environments.
- Executives from Microsoft and Chainalysis expect traditional payment rails, private networks and public blockchains to coexist, with software linking them as more commerce moves onto public infrastructure.
Bill Borden, corporate vice president of worldwide financial services at Microsoft, said Tuesday that legacy systems will face increasing pressure as transaction demands grow more complex. The tipping point comes when “latency, scale, complexity are starting to impact your ability to compete,” forcing firms to rethink how their systems are built, he said at an event hosted by Alchemy in New York City.
While automation has long been part of finance, Borden said the focus is now shifting from capability to trust. “It’s not about, can technology automate … executing a hedging strategy — that can be done. The question is: can you trust it? Can you audit and control?” he said.
Microsoft, which offers its own AI assistant in many of its products, is developing tools to manage that transition, including systems that assign identities and permissions to AI agents and track their actions. In regulated environments, Borden said firms must be able to show “what controlled it” and whether a system “followed the policy” when decisions are made without direct human input.
