How AI Changes Wealth & Asset Management

How is AI changing asset management? What impact does it have on wealth management? Well, with the commercial introduction of good-quality generative AI, the possibilities are almost limitless! In this article, we will present you with examples of the current uses of artificial intelligence for managing the wealth and assets of high-net-worth individuals. We invite you to read on.

‍

How Will AI Change Wealth Management?

‍

Firstly, let’s look at wealth management in general. How does AI change it, and what do we expect in the future?

‍

Gathering Intelligent Client Insights

‍

The first and foremost example of how AI will change wealth management is related to client data. Artificial-intelligence-powered engines enable you to understand your clients better based on their portfolios, previous transactions, and even the communication between your wealth manager and the client. How does it work?

‍

Artificial intelligence utilizes client data stored in your organization and juxtaposes it with historical data. Thanks to this, it is possible to determine what directions to pursue or even what behaviors you should expect from the client. Churn is an excellent example here—with AI engines, it can be predicted in advance, enabling you to implement predictive measures before the client resigns from your services.

‍

Learn more and read our article: Is it possible to benefit from AI in wealth management industry?

‍

Building Client Engagement

‍

You can also use artificial intelligence to personalize your services and acquire clients more effectively. Once again, it all goes down to using data.

‍

For instance, with the use of AI transaction categorization, you may label your clients and provide them with the most relevant materials in the form of a newsletter. Additionally, artificial intelligence will help you promote your services better, generating adverts in a matter of seconds and aiding you with choosing the right target. However, it is not the end of its capabilities.

‍

You may also utilize AI to address the smallest elements of your customer service. Take, for instance, a situation in which your wealth manager communicates with the client via chat messages. Using artificial intelligence, they can quickly adjust the tone of voice to match the client's, hence improving their satisfaction.

‍

Finally, AI will indirectly change and improve customer engagement in wealth management by making processes faster and more convenient. It will help you with data integration (crucial for the omni- and opti-channel approaches), ensuring that you can provide the right answers no matter how you communicate with the client. This is crucial as it makes using your services much easier for affluent individuals—if they feel like meeting in person with their wealth manager, they can do it, and if they prefer to contact them via a video call or text message, that’s also possible without any friction on the way.

‍

Portfolio Management

‍

Finally, AI engines may be used to automate and optimize your portfolio management services. Using an artificial intelligence engine is often much better than traditional methods, mainly for two reasons:

‍

• AI isn’t biased (if the data isn’t biased)—it won’t analyze the market and potential investments with pre-programmed assumptions, while humans do.
• AI can process more data—it will be able to make decisions on all the information collected, hence offering you more accurate predictions and better investment options.

‍

How Is AI Changing Asset Management?

‍

Now let’s delve into a bit more detailed analysis. How is AI changing asset management in particular? Below are a few examples.

‍

Finding Information Quickly

‍

With large portfolios, there are hundreds of assets to find—sometimes, just that may cost your wealth manager a significant amount of time. When you add to that all the information they need to have to make decisions, the task becomes strenuous, and time constraints might impact the overall quality of your services. But there is a solution to this problem.

‍

You can create your own AI-powered search engine, fed only with the necessary information. Thanks to this, your asset managers can fish for crucial information much more efficiently than through traditional means.

‍

Excellent Reporting Available at All Times

‍

AI may also be utilized to quickly generate reports on assets from any place in the world. Real-time reporting is one of the top features of the WealthArc platform, and when powered by AI, it enables you to create any type of reports you need. Thanks to this, sharing information with key stakeholders becomes easy and effortless, even if your wealth managers are on their way to their client.

‍

Enhanced Risk Management

‍

The focus on reducing risk is more than a current trend in wealth management; it’s a necessity in the uncertain times we face. Generative AI may be used here to proactively analyze the markets (including news feeds and sentiment analysis) and alert your wealth managers in advance whenever an indication of increased risk occurs. This will give your team the time they need to react and ensure that you maximize the profits from your client’s assets.

‍

The Takeaway

‍

How is AI changing wealth management and asset management? The best way is to answer this question with a single word: significantly. AI empowers wealth managers (and associated firms), driving operational efficiencies and enhancing the quality of their services by using data and its extensive analytics capabilities. Therefore, if you still haven’t implemented artificial intelligence models in your organization, do it as soon as possible—it will drive growth and prosperity.

‍

You may also read: The Impact of Regulatory Changes on Wealth Management.

‍