At NextWealth, we believe AI has the power to reshape the wealth management industry. In our Future of Financial Advice Report (February 2024) we predicted that in 2028, “AI (in all its guises) will be a given for 100% of clients, not an optional curiosity.” It could reduce cost to serve and the cost to clients, widening access to advice without the need to train and recruit an army of financial advisers and supporting teams.

We have seen a rapid increase in the use of AI in wealth management. While in October 2023, 3% of financial advice professionals told us their firm was currently using an AI solution, in the survey for this report, that rose to 65%. The numbers, however, aren’t directly comparable because the survey for this report was positioned as being about AI and will have attracted the enthusiasts. Nonetheless, the rise is stark.

This report marks version one of the AI Index. NextWealth will update this report at least annually, tracking adoption and readiness to adopt AI in wealth management and financial advice businesses. The report will also include case studies and insights from tech providers (investment platforms, back office systems and other advice tech providers) who will enable adoption of AI in our sector.

We’ll cover

• AI in wealth management today
• Perceived benefits and challenges
• Infrastructure
• Innovation
• Talent
• Governance and compliance
• Leadership

Methodology

This report is based on NextWealth insight and understanding of the wealth management market as well as dedicated research to understand how firms are thinking about the opportunities presented by AI.

• Eight interviews with C-suite executives from financial advice and support firms
• Two interviews with platform CEOs
• Nine interviews with tech providers (big tech, advice tech, vertical specialist AI tech)
• Digital survey of 52 financial advice and advice support firms in May 2024

*Our digital survey includes responses from a range of firms, over one third of which employ more than 10 client-facing financial advisers.

AI Index is available to purchase, please get in touch if you are interested to learn more. Alternatively, you can complete the form to download a sample of the report.