Agentic AI & The Future of Financial Services – Microsoft Q&A
The two most important letters in the business world for the past two years have been “AI” – artificial intelligence. It moved from futuristic concept to an everyday part of the business operations of multiple industries.
From risk assessment, to fraud detection and completing entire workflows, AI has become indispensable. The latest wave in AI, agentic AI, takes AI one step further by working autonomously with minimal human intervention. AI is already taking a leap from tool to virtual colleague that accomplishes tasks with as much or as little oversight as necessary.
Tally Kaplan Porat, Sapiens’ Director of Public Relations and Partner Marketing, recently sat down with Microsoft Germany’s Michael Zwiefler, General Manager, Financial Services, for an extended conversation on how agentic AI will continue to transform financial services, to create smarter, more adaptive organizations, and set new standards for the industry’s future.
Tally Kaplan Porat: How does agentic AI differ from earlier forms of AI used in financial services?
Michael Zwiefler: Earlier waves of AI focused on prediction, analysis, and content generation. Agentic AI, often considered the “third wave,” goes a decisive step further: it pursues goals, adapts continuously in real time, and acts autonomously. Rather than merely producing insights, agentic systems act on them. These agents can orchestrate and collaborate with other agents, which makes them very powerful, because there can be a lot of specialized agents acting together, accomplishing complex tasks 24/7.
Tally Kaplan Porat: Why do you describe this as a shift from a tool to an autonomous colleague?
Michael Zwiefler: Because agentic systems do not simply wait for prompts. They operate continuously, collaborate with other agents, and escalate to humans only when required, much like a digital colleague.
At Microsoft, we describe this evolution through the Frontier Firm model. In the first phase, humans are supported by AI agents, like inbox management. In the second phase, AI agents work side-by-side with humans; a good example is our Teams AI Agent, which manages agendas, keeps time, produces transcriptions and summaries, and assigns tasks. The third phase is where humans orchestrate work that is largely executed by agents.
Tally Kaplan Porat: What key question does this raise for financial services?
Michael Zwiefler: The core question is how agentic AI will transform financial services organizations, helping them become smarter, more adaptive, and future-ready. Agentic AI is changing the very fabric of business, triggering new products and services, as well as fundamentally new business and operating models.
Agentic AI’s Impact on Finance
Tally Kaplan Porat: Why are financial services particularly affected by agentic AI?
Michael Zwiefler: Banking and insurance are fundamentally about processing information at scale and acting on it in a timely and precise manner. That is where intelligent agents excel.
Tally Kaplan Porat: We’ve often heard of the various “waves” of AI. What makes this the third wave of AI?
Michael Zwiefler: Unlike earlier waves that focused on analysis or content generation, this wave combines generative capabilities with autonomous action in dynamic environments. Humans orchestrate AI agents, which in turn orchestrate specialized agents operating autonomously, continuously, and at scale.
Agentic AI in Action
Tally Kaplan Porat: How does agentic AI change the role of relationship managers?
Michael Zwiefler: Today, relationship managers spend up to 50% of their time on administrative tasks. Agentic AI frees them from routine work, so they can focus on client advisory and relationship building. At the same time, many mature economies will see a significant portion of their workforce retire over the next 5-8 years. Agentic AI can help banks and insurers remain productive, while also creating modern workplaces that attract top talent. Competition for the next generation of employees will be intense.
Tally Kaplan Porat: Can you provide concrete examples?
Michael Zwiefler: Examples include inbox agents that prioritize and draft responses, rating agents that combine CRM and market data, lead qualification agents, and real-time Copilot support during client conversations.
Six Foundations for Scaling Agentic AI
Tally Kaplan Porat: What must organizations have in place to scale Agentic AI responsibly?
Michael Zwiefler: Six foundations are critical:
- Robust data and model governance
- Secure and scalable cloud architecture
- Responsible AI and regulatory alignment
- An agentic operating model
- Clear business value and risk control
- Workforce enablement, supported by a strong AI culture
Tally Kaplan Porat: Why is workforce enablement so important?
Michael Zwiefler: Because AI is becoming a core competency across the entire organization. Success depends on employees seeing AI as an enabler, rather than a threat. Isolated initiatives or short-term “prompt-athons” are not enough.
If AI is truly a core capability, organizations must invest not only in training and education, but also in giving people the space to experiment; allowing them to discover how AI can help them succeed in their roles.
Financial Services Reimagined
Tally Kaplan Porat: What ultimately defines success in the agentic AI era?
Michael Zwiefler: The leaders will be those who fundamentally reimagine how they operate new business models and drive product innovation based on combining AI governance, platforms, culture, and people to unlock the full potential of agentic AI.
The agentic AI transformation ahead for financial services isn’t just about technology – it’s about reimagining how financial services organizations operate, innovate, and serve their customers. And of course, how quickly we can adapt to harness its full potential.
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