Wealth Mgmt Firms Raising AI Budget

Bengaluru: The artificial intelligence (AI) budgets at wealth management companies are set to surge from 16 per cent to 37 per cent within the next 3-5 years, according to a report on Monday.

However, a readiness gap in regulatory compliance and skilling of talent threatens to slow down efforts, said the report by IT major Wipro.

One key challenge for organisations is the skills gap in AI. To meet this challenge, 68 per cent of organizations say they are prioritizing training and recruitment in of employees in AI.

“The findings suggest that AI offers wealth management firms a chance to innovate, stand out, and succeed in an increasingly competitive market,” said Ritesh Talapatra, vice president and sector head for capital markets and insurance, Wipro.

The 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 customised wealth management guidance, optimised client satisfaction, and maximised financial returns, said Talapatra.

All surveyed firms indicate that they have started adopting AI in different parts of their operations.