AI in Wealth and Asset management - A Window of Opportunity

AI is enabling wealth and asset management businesses to build more effective customer service operations at scale, and the opportunity to build custom platforms that serve business’ needs is rich.

In an era defined by rapid technological advancement, the wealth and asset management industry is witnessing transformative changes driven by artificial intelligence (AI).

It is the opinion of many experts in the field that a window of opportunity has well and truly opened for ambitious firms to invest in platforms now - to transform their business and capture market share.

Indeed, this was the key takeaway from the 2024 NICSA Wealth and Asset Management Conference, which took place in Boston in November 2024 and we were proud to help sponsor.

The opportunity presented by AI advancements will herald a paradigm shift in how firms manage client relationships and streamline operations to maximize efficiency. The recent discussions at the 2024 NICSA Asset and Wealth Management Summit underscored the tremendous potential of AI to reshape the industry and provide deeper insights into its evolving role.

In this article, we will share some of the ways AI will transform the industry, and how businesses can take advantage.

Revolutionizing Client Relationships with AI

Client relationship management has long been the cornerstone of success in the wealth and asset management sector. With AI at the forefront, the ways in which firms interact with clients are becoming more sophisticated and deeply personalized. Traditional methods are making way for highly data-driven predictive models that are delivered with speed and accuracy.

Today’s AI-driven platforms leverage advanced data analysis and machine learning to offer insights that go beyond basic client profiling. Client history can be analyzed across multiple channels of behavior such as transaction history and communication patterns allowing for unprecedented anticipation of client preferences.

Through advanced data analysis and machine learning algorithms, these platforms can pinpoint topics of interest for each client, enabling advisers to initiate highly personalized conversations tailored to each client’s current financial priorities. This is achieved by matching clients' unique interests with current news or market trends, creating opportunities for more meaningful and engaging interactions.

AI can further be used for real-time support when dealing with clients. On-the-spot data analysis and portfolio insights can now occur, enabling advisors to respond quickly to client inquiries and make timely adjustments to strategy.

One compelling example of AI in daily use is the automated generation of meeting summaries. These systems capture and analyze conversations, providing clients with concise, actionable summaries post-meeting.

This not only enhances the client experience but also frees up valuable time for advisers, allowing them to focus on strategic planning rather than administrative follow-ups providing a more responsive and meaningful service.

As firms continue to embrace AI, they are able to be more responsive and predictive allowing not only for an increase in efficiency but also an increase in quality.

Operational Efficiency through AI Innovation

The scope of AI’s impact extends beyond client-facing applications. Wealth and asset management firms are leveraging AI to optimize internal processes, making their operations more agile, efficient and scalable.

Advanced AI-driven platforms, such as Financial Risk Assessment and Governance (RAG) systems, play a critical role in improving complex decision-making and compliance procedures. By automating complex data analysis and risk assessments across various sources such as market trends, regulatory changes and internal performance indicators, firms can ensure that their strategies align with regulatory standards while proactively mitigating potential risks, adjusting strategy and making decisions more effectively.

Moreover, the use of AI extends to workflow automation, allowing businesses to streamline repetitive rules based tasks such as data entry and transaction processing to allocate human resources to higher-value activities. For example automated reconciliation systems can rapidly match transactions to ensure accurate records reducing processing times and minimizing errors.

AI-driven automation tools are transforming back-office operations, reducing processing times, minimizing errors, and ultimately cutting costs. High volume paperwork can now be accurately processed by intelligent document processing software to classify and extract key data saving large amounts of man hours. This internal shift toward automation has profound implications for scaling operations without proportionately increasing overhead.

Strategic Integration: The Road Ahead

For wealth and asset management providers, integrating AI solutions is no longer optional. The summit highlighted how forward-thinking firms are embedding AI into their core strategies, not just as standalone tools but as embedded components of their service models.

This integration ensures that data-driven insights are accessible at every level of the organization, fostering a culture of informed decision-making.

AI’s role in wealth management is multifaceted: it provides a deeper understanding of market behavior, helps predict client needs, and optimizes overall business efficiency.

The long-term potential lies in how well firms adapt their operations and client engagement strategies to fully harness these capabilities. Those who successfully leverage AI to anticipate client needs, deliver tailored advice, and enhance operational efficiency will undoubtedly set themselves apart in an increasingly competitive landscape.

How Hengtian can help

AI development is a core component of Hengtian’s technical solutions, particularly within the wealth and asset management sector. With expertise gained from large-scale projects and our ongoing sponsorship of NICSA, Hengtian is well-positioned to deliver impactful solutions tailored to industry needs.

For a leading investment advisory firm, Hengtian developed and maintained client-facing platforms, managed a complex migration and refactoring of legacy systems, and updated backend processes. Additionally, we provided database management, project oversight, and R&D support.

In another example, over 100 Hengtian employees across four teams collaborated with a leading European provider of retirement and insurance solutions, developing systems for insurance, fund management, and brokerage management. Our team ensured successful implementation and onboarding, enabling the client to enhance innovation and competitiveness.

Beyond the wealth and asset management sphere, Hengtian has successfully developed AI-driven tools for large-scale operations. For a large catering company, Hengtian designed an AI-powered training tool using large-scale data modeling to generate training scenarios and provide administrators with data-driven insights. Externally, Hengtian developed “Xiao Tu,” an AI-powered interactive digital librarian, for the National Library of China.

Across industries, Hengtian’s expertise in AI and large-scale project execution establishes us as a trusted partner for innovation, particularly for large-scale AI initiatives in wealth and asset management.

A Future Driven by Innovation

The next phase for wealth and asset management firms is to continue exploring AI innovations that balance technological capabilities with a human touch. While AI can provide invaluable insights and improve efficiencies, the industry must remain committed to ethical considerations, data privacy standards and delivering first class service to clients to maintain trust and transparency.

As AI technology continues to advance, the wealth and asset management sector stands at the cusp of an era that promises enhanced client relationships, streamlined operations, and superior service delivery.

Embracing AI not only positions firms to meet today’s demands but also prepares them for the challenges and opportunities that lie ahead.

This transformative journey will redefine the industry, ensuring that wealth and asset managers are not just participants in the digital age but leaders in its ongoing evolution.