Research conducted by Avaloq, a prominent banking and wealth management platform, reveals that wealth managers in the UK view artificial intelligence (AI) as a pivotal element for the future of their industry, despite an existing distrust towards the technology.
The study, which gathered insights from 300 wealth managers alongside 3,000 investors worldwide, found that a striking 87% of UK wealth managers believe AI will significantly transform the field of wealth management for the better. When asked about potential areas where AI could enhance their services, a substantial 86% identified client onboarding as a key focus, followed by 65% highlighting the summarization of client meetings, 64% for automated compliance monitoring, and 61% for automated regulatory checks.
Despite this optimism regarding AI’s capabilities, the report indicates notable skepticism among wealth managers themselves. Specifically, 24% expressed doubts that their clients would trust AI for investment decisions, while 27% felt similarly about financial planning advice.
Investor sentiment in the UK reflects these concerns; only 7% indicated they would rely solely on AI for investment guidance. In contrast, 38% were open to utilizing AI tools in conjunction with their wealth managers’ assistance, while 55% preferred to avoid AI altogether in investment strategies.
Gery Zollinger, Head of Data Science and Analytics at Avaloq, remarked on the mixed feelings within the industry: “UK wealth managers acknowledge the immense potential that AI holds for enhancing their services. The range of possible applications is extensive, from automating processes that allow managers to dedicate more time to client interaction and strategic decisions, to offering streamlined analytics and cost-effective services that broaden access to financial advice.”
He further emphasized the importance of building trust in AI, stating, “There is still considerable progress to be made in closing the trust gap between wealth managers and their clients regarding AI. For AI to be effective from a client’s perspective, wealth managers must collaborate closely with them to showcase how AI can add tangible value to their investment portfolios. It is essential that the employment and effects of this technology are transparent and clearly understood. While AI can enhance the services provided to clients, the importance of the human element remains irreplaceable.”