BlackRock, the world’s largest asset manager and Microsoft, are working together to build a platform that will help people better reach their financial goals in retirement, the companies announced on Thursday.
Together the two industry giants plan to create a system using artificial intelligence, and cloud technology, that would eventually be made available to U.S. workers through their employers’ workplace savings plan. The goal is to help people understand how their financial contributions will affect their long-term retirement goals.
“We will apply the power of the cloud and AI to introduce new solutions that address this important challenge and reimagine retirement planning,” Microsoft CEO Satya Nadella said in a statement.
It’s unclear what exactly the tool will look like, because it’s still in the early stages. According to The Wall Street Journal, one option under consideration is a mobile app that rewards thrifty behavior.
“Retirement systems worldwide are under stress, and providing financial security to retirees has become one of the most defining societal challenges of our time,” Laurence Fink, BlackRock CEO, said in a statement.
Most Americans are not prepared for retirement, with an estimated 48 percent who believe they will never save more than $1 million in savings.