As a part of our WealthTech Insight Series (WTIS) and in partnership with Umlaut and IAWMC, last month we published a new research-led whitepaper to assess the current perception and opinion from UK wealth managers on the potential of AI, its future applications and whether it will have a transformative effect in UK wealth management.

The research showed that the industry is certainly aware of AI and interested in potential use cases and their benefits. But as things stand firms have bigger fish to fry in getting the basics right in-house. Data is a particular issue. AI relies on analysing large volumes of data to give accurate and actionable insight. If the data is not right, then nor will the output be and the whole thing falls down.

That said there is recognition of the benefits that AI could bring and an acceptance of its eventual adoption in some shape or form. Our respondents, in the main, are sitting back and watching things evolve and waiting for a suitable use case.

Respondents are most enthusiastic about AI in relation to scale, automation and efficiency, probably as a part of broader RPA efforts which are already underway in some firms. There is also widespread recognition of the role that AI can play in enabling the adviser and providing a boost to service. This can take many forms, from pinpointing investment opportunities, prospecting, marketing, onboarding, personalisation and sentiment analysis. The idea is that the AI does the hard work for the adviser and presents them with the right thing to do or say next.

There is a clear need for the thought leaders of AI and those vendors providing it to inform and help when it comes to AI deployment and its benefits. The general consensus was that vendors would weave it horizontally through their functions as opposed to the wealth manager applying it as a layer. The role of the regulator will also be important; many see AI as a double-edged sword; potentially a great opportunity, but also opening up a whole chasm of potential risks and downsides if regulators do not get things right and work with the industry to evolve the proposed processes and procedures to adopt AI.

Access more insight by reading the whitepaper online here

PARTNERS IN RESEARCH

Umlaut Solutions
Umlaut Solutions is a leading provider of intelligent document processing, Machine Learning and Artificial Intelligence-powered data automation solutions, specialising in the banking, financial services, and insurance (BFSI) industry. Having implemented solutions into 500+ wealth management practices, we have a strong ongoing focus on innovation and technological excellence. Umlaut Solutions leverages the latest advancements in AI and ML to help organisations streamline their data processes, improve accuracy, and drive operational efficiency.

Umlaut Solutions’ approach prioritises human-centred design and scalable technology to deliver better outcomes for all stakeholders. By understanding business needs and user requirements, we build solutions that are both technically sound and intuitive. Our solutions are adaptable to changing business needs and designed to continue delivering value as the organisation grows. With a focus on user experience, our solutions contribute to positive business outcomes and position clients for future success. Find out more at www.umlautsolutions.com

IAWMC
IAWMC is a niche management consulting firm providing services to wealth managers, private banks, family offices, asset managers, software vendors and service providers such as third-party administration firms. We differentiate ourselves from our peers and competitors by providing pragmatic and cost-effective consulting services to our clients by utilising our broad and deep knowledge of the financial services industry in which we operate. Find out more at www.iawmc.com