Wealth management firms adopt Artificial Intelligence (AI) to offer their clients personalized, efficient, and data-driven solutions. According to the Wipro Survey, The demand for AI in wealth management firms is growing more, with IT budget allocations for AI expected to more than double, from 16 to 37%, within the next 3-5 years.
Wealth management firms are experiencing a profound shift, as AI-driven innovation promises to deliver higher levels of personalization and deeper customer and market insights.
44% of organizations say they are using AI extensively. That said, these extensive users report tangible benefits, with 73% experiencing a significant competitive advantage because of AI adoption. These extensive users also lead the pack in leveraging AI to enhance client engagement, with 65% expecting significant AI-driven changes in client relationship management over the next 1-2 years.
More than 77% of surveyed firms report improved decision-making with AI-driven predictive analytics, and 76% note overall operational efficiency improvements. Meanwhile, risk management is one of the key areas disrupted by AI, according to more than half (53%) of the firms, followed by research and analysis (45%).
Ritesh Talapatra, Vice President and Sector Head for Capital Markets and Insurance at Wipro Limited, said, “This technological shift comes at a time when the industry faces several challenges, including pressures on Assets Under Management (AUM), fluctuating revenues, increasing operational costs, and rising client expectations. In this context, AI emerges as a powerful tool to deliver customized wealth management guidance, optimize client satisfaction, and maximize financial returns. At Wipro, we are committed to bringing these solutions to our wealth management clients to fuel their future growth.”
One key challenge for organizations is the skills gap in AI. To meet this challenge, 68% of organizations say they prioritize training and recruitment of employees in AI.
Almost 62% of firms identify the absence of clear regulatory guidelines as a top challenge in AI adoption.
Additionally, the majority of firms highlight regulatory and compliance challenges (55%) and biased and discriminatory outputs (54%) as significant barriers to AI adoption.
All surveyed firms indicate that they have started adopting AI in different parts of their operations. The report highlights that successful integration of AI goes beyond mere technological implementation.
