NEW YORK, May 31 (Reuters) - Morgan Stanley (MS.N) expects its revenue from trading and investment banking to slump in the second quarter given a more challenging economic environment, co-president Andy Saperstein told investors Wednesday.

Sales and trading "results will be notably down year over year versus a strong second quarter last year," while "investment banking is also very challenged," said Saperstein, who also leads Morgan Stanley's wealth management arm.

Saperstein, who is a candidate to succeed CEO James Gorman, said the wealth business is aiming to reach $12 billion in annual pretax profits over several years, and more than double its client assets under management to $10 trillion from a current $4.6 trillion. The bank is open to acquisition opportunities in wealth and asset management, he added.

Separately, Saperstein said the use of artificial intelligence could transform the work of financial advisers who serve wealthy clients.

"We're continually looking for game-changing technology to integrate into our platform," he said. "One recent example of that approach to innovation is our partnership with open AI. That relationship began well over a year ago, before they were a household name."

Reporting by Tatiana Bautzer; Editing by Lananh Nguyen and Diane Craft

Our Standards: The Thomson Reuters Trust Principles.