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AI is headed where the money is: asset management

Nov 16, 2023 - qz.com
Artificial intelligence (AI) is increasingly being used in the asset and wealth management sector, with nearly $1.9 billion of equity funds invested in the sector. AI is being used to automate workflows, make timely decisions, and generate communication for clients. Companies like Arabesque AI and JPMorgan Asset & Wealth Management are using AI to create customized portfolios based on individual client preferences, including sustainability and impact factors.

Generative AI tools are also being used to summarize complex financial information for advisers. Orion Portfolio Solutions, for example, uses AI to generate "smart summaries" for advisers to evaluate portfolios according to client wishes. Despite the increasing use of AI, industry insiders believe that human advisers will still be needed to manage client relationships.

Key takeaways:

  • Nearly $1.9 billion of equity funds have been invested in the asset and wealth management sector, with $1 billion going into data and analytics, leveraging generative AI for decision making, workflow automation, and client communication.
  • Generative AI is expected to be used in 90% of banking working hours, assisting in managing increasing customer demands for personalized and sustainable investment options.
  • Arabesque AI and JPMorgan Asset & Wealth Management are among the firms using AI to automate research and portfolio management, making these services more accessible and cost-effective.
  • While AI is becoming increasingly prevalent in the financial sector, industry experts believe that human advisers will still be necessary for managing client relationships and explaining complex financial concepts.
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