Artificial Intelligence (AI) Enabled Data has become the lifeblood of the modern wealth management industry, a report commissioned by Thomson Reuters’ Financial and Risk business to Celent shows. The report reveals that big data mining, pattern recognition and new technologies that come with AI help to flag and highlight areas that humans, in the form of wealth managers, would not otherwise pick up on their own.
The report titled Putting the AI in Data reveals that this growing AI trend in the wealth management industry is due to technological applications like robo-advice technology and next-generation financial planning platforms being often too narrow in scope and data accessibility amongst other constraints.
“Our latest research shows that the wealth management industry continues to be transformed by AI. One of the keys to unlocking the potential of AI in wealth management is through advisor empowerment, which requires data to be made more accessible to non-technical enterprise consumers, both in terms of tools and the digestibility of the data itself,” says Will Trout, Senior Analyst at Celent. “Big data tools such as Thomson Reuters’ Intelligent Tagging and knowledge graphs are now being used to uncover previously hidden connections and insights, empowering advisors and adding dramatic client value, while revolutionizing the industry for the better.”
David Akellian, Managing Director and Global Head of Wealth Management at Thomson Reuters adds: “Using artificial intelligence to mine big data represents a seismic shift in the wealth management industry.”
“Smarter advisors equal smarter investors and equal smarter investment decisions.”
Thomson Reuters commissioned Celent to conduct the report to better understand how AI can empower wealth managers and advisors. The report further discusses how technology needs and choices, aligned with organisational goals around the treatment of data could influence business outcomes. With firms starting to review how their enterprise information is managed and how to integrate alternative data into their wealth management platforms, AI is proving to be the most relevant in making sense of vast amounts of data and rendering it digestible.