Microsoft says legacy banks are hitting a breaking point as AI takes over the heavy lifting

Microsoft and Chainalysis executives warned that as AI agents begin managing transactions at scale, the financial industry must overhaul its legacy infrastructure to prioritize machine identity and trust. What to know : Financial firms are being pushed toward AI-driven, machine-executed transactions at massive scale, straining legacy systems and forcing a redesign of core infrastructure, speakers from Microsoft and Chainalysis said. Industry leaders said the key challenge is shifting from what AI systems can do to whether they can be trusted, audited and controlled in highly regulated environments. Executives from Microsoft and Chainalysis expect traditional payment rails, private networks and public blockchains to coexist, with software linking them as more commerce moves onto public infrastructure.