Wealth management firms to boost AI budget from 16% to 37% in 3-5 years: Wipro survey

More than three-quarters (77 percent) of surveyed firms report improved decision-making with AI-driven predictive analytics, and 76 percent note overall operational efficiency improvements

By  Storyboard18Oct 29, 2024 9:16 AM
Wealth management firms to boost AI budget from 16% to 37% in 3-5 years: Wipro survey
AI budget investment will increase from 16 percent to 37 percent by 2029

Technology services and consulting company Wipro has projected an uptick in Artificial Intelligence (AI) investments in wealth management companies.

According to a report by Wipro, the IT budget allocations for AI are expected to more than double within the next three to five years. The report mentioned that the AI budget investment will increase from 16 percent to 37 percent by 2029.

The report, 'AI in Wealth Management: Navigating an Evolving Data-Driven Landscape,' mentioned that companies indicated that they have started adopting AI in different parts of their operations. The firms said they have experienced an advantage due to AI adoption. However, 44 percent said they were using AI extensively in their operation such as client management. 65 percent of the firms have expected significant AI-driven changes in client relationship management over the next 1-2 years.

Overall, more than three-quarters (77 percent) of surveyed firms report improved decision-making with AI-driven predictive analytics, and 76 percent note overall operational efficiency improvements. Meanwhile, risk management is one of the key areas AI disrupts, according to more than half (53 percent) of the firms, followed by research and analysis (45 percent).

The report underscored the pivotal role of advisors in effectively integrating AI into financial advice to meet the diverse and evolving needs of investors.

The surveyed firms in the repoprt highlighted the challenges related to the regulatory environment. Almost two-thirds (62 percent) of firms identify the absence of clear regulatory guidelines as a top challenge in AI adoption. Additionally, the majority of firms highlight regulatory and compliance challenges (55 percent) and biased and discriminatory outputs (54 percent) as significant barriers to AI adoption.

"This 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 customized wealth management guidance, optimized client satisfaction, and maximize financial returns," Ritesh Talapatra, Vice President and Sector Head for Capital Markets and Insurance, at Wipro Limited said.

First Published on Oct 29, 2024 9:16 AM

More from Storyboard18

Brand Marketing

NCLT rejects insolvency plea against Zomato, providing relief amid legal dispute

NCLT rejects insolvency plea against Zomato, providing relief amid legal dispute

Brand Marketing

Unilever acquires personal care brand Wild

Unilever acquires personal care brand Wild

Brand Marketing

Schbang MMaximise co-founder Masoom Minawala steps down

Schbang MMaximise co-founder Masoom Minawala steps down

Brand Marketing

Dabur sees flat Revenue in Q4 amid inflation and weak consumer demand; shares drop 6%

Dabur sees flat Revenue in Q4 amid inflation and weak consumer demand; shares drop 6%

Brand Marketing

Hero MotoCorp records 5.9 million sales in FY’25; expands EV and global footprint

Hero MotoCorp records 5.9 million sales in FY’25; expands EV and global footprint

How it Works

ChatGPT data stored outside India, copyright act does not apply in ANI case: OpenAI to Delhi HC

ChatGPT data stored outside India, copyright act does not apply in ANI case: OpenAI to Delhi HC

Brand Marketing

Meta and UFC strike multi-year deal to enhance fan experience

Meta and UFC strike multi-year deal to enhance fan experience

How it Works

Creative control or creative caution? What’s really driving content choices on Indian OTTs

Creative control or creative caution? What’s really driving content choices on Indian OTTs