AI Revolution: Wealth Management Firms Double Down on Innovation

A Wipro survey reveals that wealth management firms in the US are significantly increasing AI budgets, anticipating a transformation through AI-driven personalization and insights. The study highlights the industry's ongoing shift towards AI, with firms reporting tangible benefits in decision-making and risk management.

A recent survey conducted by IT services giant Wipro has found that wealth management firms are set to more than double their investment in artificial intelligence (AI). Unveiled on Monday as part of Wipro's report, "AI in Wealth Management: Navigating an Evolving Data-Driven Landscape", the findings underscore a significant trend in the sector.

The study, which surveyed 100 executives in the United States, assesses AI's transformative impact on wealth management. Participants revealed that AI-driven innovation is paving the way for unprecedented levels of personalization and deeper insights into both customers and markets. The survey predicts that IT budget allocations for AI in these firms will leap from 16 percent to 37 percent over the next three to five years.

Though all surveyed firms have begun integrating AI into various operational areas, only 44 percent reported extensive usage. Yet, the majority of these intensive users are noticing considerable advantages, with 73 percent claiming a significant competitive edge. Furthermore, 65 percent of executives foresee major AI-induced shifts in client relationship management within the next two years. The report also notes improved decision-making through predictive analytics and enhanced operational efficiency, with AI significantly transforming risk management, research, and analysis.

(With inputs from agencies.)