BENGALURU Bengaluru: Artificial intelligence (AI) budget at wealth management companies will increase from 16 per cent to 37 per cent in the next 3-5 years, according to a report on Monday. However, IT major Wipro reports that regulatory compliance and lack of readiness in talent skills threaten to slow down efforts.
A major challenge for organizations is the skills shortage in AI. To meet this challenge, 68 percent of organizations say they are prioritizing training and recruiting employees in AI. “The findings show that “AI gives wealth management firms the opportunity to innovate, stand out and succeed in an increasingly competitive market.”
The technological shift comes at a time when the industry is facing multiple challenges, including pressure on assets under management (AUM), fluctuating revenues, rising operating costs and rising customer expectations. In this context, AI emerges as a powerful tool to deliver customized wealth management guidance, optimized customer satisfaction and maximum financial returns, Talapatra said. All the firms surveyed indicated that they have started adopting AI in various parts of their operations. Has given. However, less than half (44 percent) say they are using AI extensively.
“Despite this, these widespread users reported solid benefits, with 73 percent experiencing a significant competitive advantage due to AI adoption,” the report noted. These users are leveraging AI to enhance client engagement. are also leading the rise, with 65 percent of them expecting significant AI-driven changes in client relationship management in the next 1-2 years.
Overall, more than 77 percent reported better decision making with AI-powered predictive analytics and 76 percent reported improved overall operational efficiency. Meanwhile, according to more than half (53 percent) of firms, risk management is one of the key areas disrupted by AI, followed by research and analytics (45 percent), the report said.
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