New Data Shows Wealth Management Firms Winning with AI

As firms grapple with decreasing profits due to fierce competition and the rise of self-directed accounts, AI is becoming a powerful tool to mitigate margin pressure and reshape the industry landscape. As wealth management firms experiment with AI, they are wondering: Are we behind or ahead of our competitors?

Wipro recently surveyed 100 CXOs and wealth management leaders from US-based firms with 500+ employees, asking how AI is shaping (or threatening) their business.

The data indicates that the sector is poised for substantial change, with nearly 50% of firms already using AI extensively.

The Evolving Landscape of Wealth Management

Our research reveals that the adoption of Al in wealth management is already widespread:

44%
of firms are using Al extensively

28%
with robust usage policies in place of these firms

56%
report moderate usage, predominantly with some policies in place.

Early adopters report seeing significant benefits. With AI, personalized and data-driven services are rapidly becoming the norm. Firms that give AI a leading role are positioning themselves to capture significant market share and drive client loyalty in a crowded marketplace.

Sample of Key findings

Percentage of firms that have integrated AI into research and analysis

45%
of firms have integrated Al into research and analysis

43%
anticipate additional disruption in this area within the next one to two years

29%
of firms are currently implementing Al in portfolio management;

49%
expect to make further Al-driven changes in the next one to two years.

Percentage of respondents enhancing their client experience through AI

New Data Shows Wealth Management Firms Winning with AI

Driving operational efficiencies with AI

Other Topics Report Explores:

Key AI technologies and trends expected to be most disruptive in the next five years
Rising interest in predictive analytics and natural language processing highlights a growing focus on data-driven decision-making and sentiment analysis
Some wealth management firms may be overestimating their readiness and the effectiveness of their AI usage policies
Many more stats and quotes from subject matter experts

Plus, view 5 actionable recommendations garnered from the survey’s findings.