Generative AI has the potential to reshape investing and change how money managers advise, inform, and engage their clients.
From reviewing the daily news and trading activities to recommending real-time portfolio adjustments, generative AI (GenAI) is poised to revolutionize the way asset and wealth managers operate. KPMG has surveyed executives on their intention to adopt generative AI and found 50 percent of global business executives are likely to allocate budgets for GenAI within the next six to twelve months, accelerating its adoption. Fintechs are no exception.
Asset and wealth managers have identified four broad areas where GenAI could have the greatest impact, including:
While investment firms are ramping up GenAI implementation to automate and streamline their processes, they also have concerns about its risks and challenges. Key barriers include weak data foundations, data privacy threats, legality of GenAI outputs, lack of skilled talent, and risks surrounding the cost of investment.
To mitigate these risks without delaying implementation, asset and wealth management companies need to adopt a multidisciplinary approach. Representatives from risk, legal, compliance, IT, and cybersecurity need to be part of this initiative to enable proper oversight and planning. Leaders can start by building a rigorous framework for use case selection and adoption—informed by businesses’ risk appetite and cultural readiness—while enabling a safe ecosystem for their employees to experiment and innovate.
Can generative AI spark innovation in asset and wealth management?
Learn how generative AI is transforming investing and changing how asset and wealth managers advise, inform, and engage their clients.
Download PDFA leading US financial services company recognized the growing risks associated with its artificial intelligence (AI) and machine learning (ML) systems.
Read moreKPMG generative AI survey report: Financial services
An exclusive KPMG survey shows how financial services leaders are approaching this transformative technology.
2023 KPMG US Financial Services Sector Insights Report
Senior technology executives in the financial services sector are almost unanimously convinced their organizations will be able to meet their efficiency and cost-cutting goals using their existing technology platforms.
CCO Insight: Analytics & Automation
Driving a Tech & Data-Driven Compliance Program