Wealth managers are adopting AI and machine learning faster than other financial services companies

As advisers continue to show enthusiasm for the potential of artificial intelligencethe financial services industry is focused on how to make the most of the booming technology in the years to come.

“The Future of the Data-Driven Workplace”, a new research report from Financial planning parent company Arizentprovides insight into how business leaders are leveraging AI and machine learning to drive growth and efficiency.

The study surveyed 386 executive-level respondents in the wealth management, banking, mortgage and insurance industries. Survey participants ranged from managers to C-level executives, with 61% describing themselves as department or division head, vice president or above.

Once considered a new business tool, the study reveals that the impact of AI on data-driven decision-making across all financial services sectors is now undeniable. From simple functions like planning and scheduling to complex tasks like underwriting and fraud detection, AI and machine learning are part of the equation.

Nearly 90% of financial services company executives believe their companies are taking the necessary steps in accessing, managing and integrating data to stay competitive in their respective industries. But even with this high confidence, only 51% of respondents say their companies are actively implementing AI and machine learning tools beyond the planning and investigation phases.

“The tools have allowed some companies to outpace their competitors, using hardware and software to improve efficiency, reduce costs, manage risk and, in a more brutal realization, eliminate the need for once vital staff,” indicates the report.

The emergence of AI and analytics in data-driven decision-making is not without controversy. The use of AI in loan decisions is in the crosshairs of federal agencies like the Consumer Financial Protection Bureau, which says algorithms can’t always make loan decisions fair due to their inability to be free. of prejudice.

But the industry-wide love feast of AI persists because of its power to tackle risk management and other industry-specific goals. According to the study, wealth management companies were found to be particularly high in artificial intelligence, while insurance companies use the technology at a lower rate.

Companies not yet using the technology cite a lack of talent, unreliable data sets and high costs as barriers. Those already on board say the power of AI to cut costs and generate new revenue gives them a solid foundation to build on.

Scroll down to see more wealth management takeaways from the new research. All analysis can be found here.