Research conducted by Avaloq, a platform specializing in banking and wealth management, reveals that wealth managers in the UK view artificial intelligence as a crucial element of their industry’s future, yet they harbor reservations about its reliability.
The study surveyed 300 wealth managers alongside 3,000 investors worldwide, highlighting that 87% of UK wealth managers recognize the transformative potential of AI in enhancing wealth management practices.
When queried about the areas where AI could be beneficial, a substantial 86% identified client onboarding as a key application, while 65% indicated its usefulness in summarizing client meetings. Other notable areas include automated compliance monitoring (64%) and regulatory checks (61%).
Despite this optimistic outlook, a significant distrust in AI persists among wealth managers. The findings show that 24% of them doubt their clients would trust AI for investment decisions, and 27% feel that clients would be skeptical of its use in financial planning.
UK investors share these concerns, with only 7% expressing confidence in AI for investment guidance. Moreover, 38% are open to using AI tools in conjunction with their wealth managers, while a majority, 55%, would prefer not to rely on AI at all for investment advice.
Gery Zollinger, head of data science and analytics at Avaloq, commented on the findings: “UK wealth managers acknowledge the immense potential of AI to assist them. The variety of possible applications is extensive, ranging from automating processes that allow managers to devote more time to clients and strategic thinking, to refining analytics and delivering cost-efficient services that broaden access to advisory resources.”
He added, “Nonetheless, there remains a significant gap in trust regarding AI between wealth managers and their clients. To facilitate AI’s success from the client’s perspective, wealth managers must engage closely with them to illustrate the value that AI can add to their investments, ensuring that its use and effects are transparent and comprehensible. While AI can enhance the services that advisors offer, the human touch will continue to be indispensable.”