122 “ The frontier firm is no longer a future vision; it’s a competitive imperative” TYLER PICHACH, MICROSOFT What happens when AI evolves from a tool into a trusted co-worker? According to Microsoft’s 2025 Work Trend Index, that’s already the reality for ‘frontier firms’: a new wave of organisations where humans and AI agents collaborate to drive innovation and performance. “A frontier firm is an organisation that combines human expertise with AI agents to improve efficiency, accelerate growth and create new value,” says Dalia Ophir, director of business strategy for worldwide financial services at Microsoft. “AI handles tasks while humans provide oversight and direction.” But how does this translate into banking and insurance? “Being a frontier firm in financial services means embracing a new operating model – one where AI agents and human teams work side by side to deliver faster, smarter and more personalised outcomes,” says Tyler Pichach, global head of AI strategy and go-to-market for payments and banking at Microsoft. “It’s not just about automation; it’s about augmenting human judgement with real-time intelligence and adaptive systems that can learn and evolve.” In the insurance sector specifically, becoming a frontier firm boils down to reinventing the value chain with AI at its core. “Becoming a frontier firm in the insurance sector involves rethinking operational models by integrating AI agents into core business processes,” says Ophir. “This transformation impacts the entire insurance value chain, including sales and distribution, underwriting, Financial services firms are entering a new era where AI is no longer just a tool but a co-worker that enables transformation across banking and insurance. Microsoft’s Tyler Pichach and Dalia Ophir explain how frontier firms are harnessing AI agents to reimagine core systems, boost productivity, enhance compliance and deliver personalised customer experiences BY ALICE CHAMBERS FEATURE finance of rise frontier The
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