Artificial Intelligence agents face memory limits in wealth management

Citi is pushing deeper into Artificial Intelligence for wealth management with a new digital advisor, but industry executives say agent memory remains a major constraint. Better short-term and long-term recall could eventually help advisors serve more clients and maintain more continuous relationships.

Citi is expanding its use of Artificial Intelligence in wealth management, including a new digital advisor called Citi Sky. Last week, Citi unveiled “Citi Sky,” a 24-hour Artificial Intelligence-powered wealth advisor that will start getting rolled out this summer to certain clients. Clients will be able to ask the tool about personalized financial questions and market insights. Citi said the advisor will become more intuitive over time, and wealth head Andy Sieg said it could “change the model of wealth management.”

Dipendra Malhotra, Citi’s head of wealth technology, said a key barrier for Artificial Intelligence agents across wealth management is memory. He pointed to both short-term memory and long-term memory as unresolved challenges. In live conversations, limited short-term memory can lead to hallucinations if exchanges run too long. He said newer algorithms will likely help summarize conversations in real time so agents can sustain longer discussions. Long-term memory is a separate challenge involving an agent’s ability to retain context from all conversations, clicks, known client information, and transactions, along with the personal, financial, and political events that advisors track.

Malhotra said stronger memory would make advisors more productive and help them maintain more continuous client relationships. Agents that can remember ongoing interactions could allow a single advisor to serve more clients effectively, improving both productivity and scale. He described that capability as the industry’s ideal end state. Even so, Citi still plans to hire more wealth advisors, a point Sieg also made when introducing Citi Sky. The tool was developed with technology from Google Cloud and Google DeepMind.

Across the industry, firms are using Artificial Intelligence to automate routine work, personalize advice, and extend advisor capacity. Bank of America, for example, has rolled out a tool that helps advisors prepare for, conduct, and follow up on client meetings. Citi is also investing in generative Artificial Intelligence beyond wealth management. CEO Jane Fraser said on an earnings call in January that GenAI tools had saved developers 100,000 hours a week with automated code reviews. The bank spent ?.3 billion on technology and communication in the first quarter of 2026, according to an April earnings presentation.

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