The outlook for artificial intelligence, AI, and wealth managers in the UK received another significant boost yesterday, with the announcement of the AI Opportunities Action Plan serving as a clear signal of the Government’s commitment to the technology. Suman Rao writes
The plan – which the UK Prime Minister aims will “make Britain the world leader” in AI and comes alongside an investment of £14 billion from private lending tech firms – is just the latest signal that it’s time for UK wealth managers to consider how best to adopt AI.
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AI has moved from an exciting yet nascent technology to something that all wealth managers must have a plan for. Today’s news is the latest statement of intent from the UK that it foresees playing a leading role in the development and deployment of AI, and while the Government’s plan is focused on the UK public sector, it is critical that financial services firms take this opportunity to get on board too and help spearhead future innovation.
With our 2024 research revealing that the majority of UK wealth managers (87%) believe AI will be integral to their future work and the UK wealth management industry as a whole, bringing benefits across client onboarding, meeting summaries and regulatory checks, today’s announcement will no doubt be further impetus for them to embrace the technology.
For wealth managers that have yet to consider AI, their priority should be understanding the risks and opportunities involved, and how these best fit with their business model. Our research shows that UK investors are most comfortable with using AI in conjunction with humans for a range of investments tasks. They are far less comfortable with delegating full responsibility to AI, indicating a clear continued need for the human touch.
With the pace of AI change only accelerating, wealth managers need to determine exactly what split of human versus machine is right for their business in the future.
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By GlobalData
Suman Rao is the managing director for the UK and Ireland at Avaloq.
