Northern Trust Cuts Onboarding Time by 83% With Microsoft AI Agent

Northern Trust has partnered with Microsoft Frontier Company's forward deployed engineering teams to develop an AI-powered agent that dramatically accelerates client onboarding for its analysts. The new system reduces data preparation time by 83%, compressing the process from two and a half weeks down to just three days, according to an announcement made Monday. The agent works by pulling customer information from multiple sources and organizing it into a standardized format, simplifying the onboarding workflow.

The solution runs on Microsoft Azure infrastructure and leverages Microsoft Foundry for enterprise AI capabilities, integrating with Microsoft 365 applications. The architecture includes a governed intelligence layer that allows the agent to accumulate knowledge over time, while Northern Trust analysts maintain the ability to review and approve the agent's decisions before they take effect.

Pete Cherecwich, chief operating officer at Northern Trust, emphasized that the agent enables faster client onboarding while preserving the oversight and control mechanisms the firm requires.

Governance Takes Center Stage in Financial Services AI

The onboarding agent represents a broader expansion of Northern Trust's existing relationship with Microsoft as financial services companies grapple with deploying sophisticated AI systems while safeguarding security, privacy and governance standards. An Evident report released last month found that more than two-thirds of global financial institutions surveyed have implemented additional controls for their AI systems, reflecting heightened attention to responsible AI deployment across the sector.

Northern Trust CEO Michael O'Grady described the onboarding agent during the firm's Q3 2026 earnings call as combining "advanced AI with enterprise-grade privacy, security and governance to make the process faster for clients." Human review is embedded throughout the agent's operations, enabling analysts to examine the tool's reasoning and validate its outputs before implementation.

Bill Borden, corporate VP of worldwide financial services at Microsoft, noted that the approach "points to a broader opportunity across regulated industries to transform complex workflows and deliver business value without compromising trust."

Expanding AI Across Northern Trust Operations

Beyond the onboarding agent, Northern Trust has rolled out client action plan agents that save customer relationship managers two to three hours per client memo, according to O'Grady. The firm has also deployed AI-enabled digitization that has nearly doubled straight-through processing, or automated financial transactions. Internally, an AI assistant called Byron helps wealth managers deliver more personalized insights to their clients.

O'Grady told shareholders in a 2025 report that the deployment of AI and the firm's proprietary platform has generated efficiency and productivity improvements. During the earnings call, he stressed that "Our approach is disciplined, starting with outcomes, simplifying processes and redesigning work rather than just adding tools."