Ameriprise spends $1B annually on AI for advisor workflows

Ameriprise Financial Inc. is spending about $1 billion annually on technology and artificial intelligence, embedding AI-powered tools into advisor workflows to drive growth and personalize client advice at scale.

"We know that rapid advances in AI are reshaping expectations for what a premium client and advisor experience should be," Jim Cracchiolo, chairman and chief executive officer at Ameriprise, said on the firm's second-quarter earnings call.

The Minneapolis-based wealth manager is deploying AI across three areas: practice growth, operational efficiency and personalized client experiences. Advisors using the firm's AI-powered insights capabilities have seen a "significant increase in net flows," according to internal benchmarking data. The company is also using AI for faster service resolution, virtual assistance, fraud prevention and voice authentication.

The $1 billion annual commitment positions Ameriprise against rivals including Charles Schwab Corp. and Morgan Stanley, which are also investing heavily in AI. Ameriprise trades at about 22 times forward earnings. The firm's integrated technology ecosystem, built over years, gives it an advantage in deploying AI quickly and securely, Gerard Smyth, executive vice president and head of technology and service delivery, said.

How Ameriprise Is Embedding AI Into Advisor Workflows

Ameriprise is integrating AI directly into the tools advisors already use rather than building separate applications. The firm's AI-powered insights surface opportunities for advisors to strengthen client relationships and focus on actions that drive growth. Early results show advisors using these capabilities are generating higher net flows compared with those who do not, the company said, without disclosing specific figures.

On the efficiency side, Ameriprise is using AI to simplify everyday tasks, streamline workflows and reduce administrative burden. The goal is to help advisors spend less time navigating internal processes and more time serving clients. The company is also deploying AI for faster call resolution through virtual assistants and for fraud detection using voice authentication technology.

For client personalization, AI helps advisors prepare for meetings by surfacing relevant information and improving continuity across tools. Cracchiolo emphasized that human judgment and personal relationships remain central to the Ameriprise client experience, with AI serving as an augmentation layer rather than a replacement.

The Infrastructure Behind the AI Push

Ameriprise's ability to deploy AI at scale depends on the technology foundation it has built over several years. The company spends roughly $1 billion annually on technology, including AI capabilities, platform enhancements and supporting infrastructure. This has created an integrated data and systems ecosystem that allows AI models to be deployed quickly across the advisor and client experience.

The firm supplements its proprietary capabilities with solutions from leading technology companies and advanced AI models to improve performance and scalability. Ameriprise is also focused on driving adoption, equipping advisors and their staff with the tools and training needed to embed AI into daily workflows.

The wealth management industry is in the early stages of an AI-driven transformation. Charles Schwab has been developing its own AI tools for advisors, while Morgan Stanley has deployed a generative AI assistant powered by OpenAI's technology. Ameriprise's $1 billion annual technology spend signals that the firm views AI as a competitive differentiator rather than an experimental initiative.

For investors, the question is whether these investments translate into measurable returns. Ameriprise's advisors using AI insights are already showing improved net flows, a leading indicator of revenue growth. If the firm can sustain this momentum, the AI investment could widen its competitive moat against smaller rivals that lack the resources to build comparable technology infrastructure. Ameriprise shares trade at about 22 times forward earnings, a premium to some regional wealth managers but in line with larger diversified financial firms.

This article is for informational purposes only and does not constitute investment advice.