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 Makers

'Fevicol is a people's brand', says Pidilite's new CMO Sandeep Tanwani

'Fevicol is a people's brand', says Pidilite's new CMO Sandeep Tanwani

Brand Marketing

Global Ads Spotlight: Gatorade turned city streets into sports playgrounds with bold 'Turf Finder' campaign

Global Ads Spotlight: Gatorade turned city streets into sports playgrounds with bold 'Turf Finder' campaign

Brand Marketing

India's sports industry hits Rs 16,633 crore in 2024, driven by sponsorship, endorsements: GroupM

India's sports industry hits Rs 16,633 crore in 2024, driven by sponsorship, endorsements: GroupM

Brand Makers

Movie theatres are never coming back, says Netflix's co-CEO Ted Sarandos

Movie theatres are never coming back, says Netflix's co-CEO Ted Sarandos

Brand Marketing

Renault to take full control of Indian manufacturing JV, acquires Nissan’s 51% stake

Renault to take full control of Indian manufacturing JV, acquires Nissan’s 51% stake

Brand Marketing

ChatGPT hits one million users in an hour as Ghibli maker free image generation goes live

ChatGPT hits one million users in an hour as Ghibli maker free image generation goes live

Brand Marketing

Google to pay $100 million to settle 14-year-old ad lawsuit

Google to pay $100 million to settle 14-year-old ad lawsuit

Brand Makers

PepsiCo's CEO says 'consumer maverick' mindset drives success amid Cola Wars

PepsiCo's CEO says 'consumer maverick' mindset drives success amid Cola Wars