Charles Schwab's chief executive publicly questioned the market's reaction to a recent decline in the company's share price, saying artificial intelligence is assisting Schwab's business rather than hindering it.
Speaking on Bloomberg Television on Wednesday, Rick Wurster addressed investor unease after Schwab shares fell 7.4% on Tuesday amid concerns that AI could disrupt the industry. Wurster countered that narrative, saying the firm is both using and benefiting from AI in its client-facing operations.
Wurster pointed to the companys application of AI-driven Wealth.com as an example of how the technology is integrated into client interactions. He argued that AI has helped Schwab streamline operations and materially reduce expenses tied to servicing accounts. "Cost to serve a Schwab account has dropped 21%," Wurster said during the interview.
Expressing his reaction to the stock market movement, Wurster described himself as "disappointed and surprised at the stock sell-off." He suggested that investors are overlooking Schwabs position in the AI landscape, adding that "the markets missing that were a winner in the AI space."
The comments were framed in direct response to the price decline that followed headlines and investor sentiment around AI disruption. Wursters remarks emphasized operational benefits the firm attributes to AI and sought to reassure markets that Schwab is positioned to gain from the technology rather than be disadvantaged by it.
The interview and the subsequent public statements underline the tension between short-term market reactions and managements view of technology-driven operational improvements. Wursters figures and examples were presented as evidence that the firm is already realizing efficiencies from AI integration, while the drop in shares reflected investor concerns about the broader implications of AI for financial services firms.
Summary
Schwab CEO Rick Wurster told Bloomberg Television that the firm is benefiting from AI and using tools such as Wealth.com to interact with clients. He highlighted a 21% decline in the cost to serve accounts and expressed surprise and disappointment at the 7.4% stock sell-off that occurred amid AI disruption fears.