AI Set to Transform Wealth Management, But Will Clients Trust It?

A recent study analyzing input from 300 wealth managers and 3,000 investors worldwide highlights the transformative role artificial intelligence (AI) is poised to play in wealth management.

According to the findings, 87% of UK wealth managers view AI as essential to their industry, with many believing it will drive significant improvements.

When asked about specific areas where AI could provide support, 86% pointed to client onboarding as a key application. Other prominent uses include summarizing client meetings (65%), automated compliance monitoring (64%), and regulatory checks (61%). Despite this optimism, the report underscores lingering skepticism. Nearly a quarter (24%) of wealth managers doubt their clients’ willingness to trust AI for investment purposes, while 27% are uncertain about client trust in AI for financial planning.

The investors surveyed echoed these concerns. Only 7% of UK investors expressed readiness to rely solely on AI for investment advice. A more balanced approach was preferred by 38%, who would use AI tools alongside their wealth manager. Meanwhile, 55% of respondents rejected the idea of incorporating AI into their investment strategies entirely.

Gery Zollinger, head of data science and analytics at Avaloq, commented on the findings, noting the vast potential AI offers wealth managers. From automating routine tasks to delivering cost-effective and accessible services, AI can free professionals to focus more on strategic decision-making and client relationships. However, he emphasized the importance of addressing the trust gap.

“For AI to succeed, wealth managers must work collaboratively with their clients to showcase its value while maintaining transparency and clarity about its role,” Zollinger explained. He stressed that while AI can enhance the services provided by advisors, the human touch will remain a critical component of effective wealth management.