Charles Schwab is investing in AI throughout its internal and client-facing operations, supported by the recent launch of two AI-driven tools this year. 

In June, the company announced a pilot program for employees to use Schwab Assistant, a virtual agent that serves as an internal copilot that can help employees in basic search queries about company rules and client data, according to the company.  

Schwab launched Schwab Assistant for consumers in 2020 but added generative AI for employees last month.

In May, the company announced an AI-powered portfolio insights tool that creates tailored summaries of Schwab data, research and third-party news for each client’s holdings, according to the bank’s second quarter earnings report. 

The May announcement was released in tandem with a client survey that showed more than 60% of 1,000 people surveyed were interested in using AI in the investing process. 

“AI will help us attract new clients, deliver new capabilities to them, personalize more journeys and create more opportunities to deepen relationships over time,” Rick Wurster, chief executive of the bank, said in the earnings call today. 

The company did not share adoption or efficiency metrics.  

Employees of the $491 billion bank also have access to Microsoft CoPilot, Managing Director of Workplace Technology Howard Hecht, said on the podcast “Insight On” last year. 

Software development teams at the bank reported productivity increased by 15% to 20% during the quarter, Wurster said.  

“I think AI is absolutely a benefactor in our trading levels and will continue [to] drive people use AI to both do research on how to position themselves and how to invest, as well as use AI in more of an algorithmic fashion to drive some of their trading,” Wurster said. 

Charles Schwab also reported for Q2:  

• Net income of $2.8 billion, up 32% year over year; 

• Revenue of $7.1 billion, up 21% YoY; 

• Number of bank accounts up 12%; and 

• Cost per account of $319, down 21% since 2020. 

Wurster said AI efficiency allows the company to invest more in AI development.  

“Our scale powers our reinvestment capacity and durable earnings power,” he said. 

Charles Schwab [NYSE: SCHW] shares lost 2.29% and were trading at $99.96 at market close today. The bank has a market capitalization of $173 billion.

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