Wealth managers expect to increase work with artificial intelligence in the future, but are they ready to embrace it?
While previously wary of the technology wealth managers now see artificial intelligence (AI) as a game changer. The implementation of AI in wealth management will be positive but will replace humans, according to a new report by Temenos and Forbes Insights.
The joint report found that more than 90 percent of wealth managers and high-net-wealth investors globally are willing to integrate artificial intelligence into their operations.
In Asia, where both institutions and clients are quickly embracing digital wealth solutions, 70 percent of wealth managers say digitization is essential. Attitudes in Europe are slightly less welcoming though with 63 percent happy with digital deployment. This compares with an even lower global average of 52 percent.
Human not Required
Worryingly for wealth managers clients are more optimistic than advisers on the future benefits of AI. Over half of clients surveyed said they expected new and sophisticated products would emerge with AI.
Some 45 percent of clients however believe AI will replace humans on portfolio management over the next five years, with 29 percent convinced client communication would be carried out by AI. Just 7 percent of clients said they expected portfolio management would remain a role carried out by humans in five years time.
