A recent Bloomberg sponsored roundtable of experts provided a refreshingly positive outlook on the uses of gen AI in the WAM sector:
Some of the experts stressed that Gen AI will help to improve financial education, provide new ways to reach clients and drive innovative marketing. It can also open up pathways into Wealth and Asset Management for those who don’t believe the sector even cares about them or wants to help them manage their money. At a time when financial inclusion is a big societal issue, Gen AI can open doors and change minds. That’s an important benefit which we need to make the most of.
WAM leaders are starting to think positively and practically about Gen AI. I’m hearing people talk about it as a ‘game changer,’ especially in areas like portfolio management, risk assessment, financial analysis, and forecasting. Of course, that might make Financial Advisors and Relationship Managers a little nervous, but the ‘human angle’ will always be vital to WAM. What Gen AI will do is compliment their skills and experience, helping them do more business, and transition to higher value-added tasks. The key is fostering deep relationships with clients.
All that sounds good, but how do you start? Beyond the first step which is having clarity about your business problems, I believe there are a few no-regret moves that business and technology owners can take to make their organisations Gen AI ready. I have classified them into 3 buckets - Strategy, IT and Operating Model.
Strategy:
IT:
Operating Model:
The moves above, I believe are the basic ones. The approach above is about enhancing existing ways of working. Equally if your ambitions permit, there is a case to reinvent your business model around AI.