AI can be used to streamline administrative tasks, freeing up time for wealth managers, which in turn should allow them more time to do what they do best.

For example, Ben Covey, managing director of private clients at 7IM, explained his firm is exploring a number of areas where AI can support the business. This includes possible uses in client-facing roles and within support functions.

7IM has also partnered with AI firm Aveni to use the technology to support advisers in their meetings and calls with clients. The technology writes a draft meeting note for advisers as soon as the client leaves the office.

“The technology has come so far in a short period of time and, when used consistently, can really help an adviser to be more productive, by reducing the amount of manual record keeping they undertake,” Mr Covey commented. In terms of client facing work, 7IM uses a virtual assistant so advisers can spend time on “more valuable aspects of the relationship”.

Despite the AI boom, there is still a need for a balance between technology and the human experience. Professionals and clients alike have expressed their concerns over the possibility of AI taking over the role of a wealth manager.

Nicholas Charles, founder and chief executive of wealth retention operating system Dante, acknowledged that many were having the same conversations about the internet as it was being integrated into the industry.

“People don’t like change,” he said. “But you can’t just bury your head in the sand and ignore AI because you risk going bust.” With AI improving efficiency, those who do not embrace it are likely to be left behind as they are still focusing on completing tasks which could be handled by the technology instead. Ultimately clients are paying for the relationship, claimed Mr Charles, as “people always buy from people”.

As a result, he believes that AI will be a tool the industry works with rather than a tool that replaces people. Mr Charles also acknowledged AI can be “overly sensitive” at times when it is being used to flag anything that looks wrong. However, he does not believe it is worth scrapping AI over this. “This just means we need to be more vigilant,” he claimed. It is also worth noting that AI is relatively new and can be improved as it develops at later stages. As a result of the risks associated with AI, in addition to clients demanding a personal experience with wealth managers, firms seem to be aiming for a hybrid strategy when implementing AI.

This is what wealthtech Objectway is seeing, with firms stating that using technology for efficiency with the need for personalised customer service “go hand in hand”. Objectway has been exploring “powerful” client facing AI initiatives with wealth management firms which complement this balance. For example, clients can receive personalised alerts on their portal based on their suitability preferences previously captured in a contract lifecycle management (CLM) solutions. This means clients receive alerts if there are news articles which interest them and also receive alerts prompting them to arrange a meeting with their wealth managers to discuss the topic in more detail.

While Mr Covey believes 7IM is not seeing face to face interaction change as a result of AI, Mr Khan suggested it may depend on the situation. This includes the client’s preferences, the complexity of the financial advice and the quality of the digital tools used. For example, a client would prefer not to need to speak to their adviser every time they need change their details, such as a phone number. However, they would want to speak to their adviser face-to-face when discussing an investment proposal, Mr Khan explained. He added: “Recent market research also shows that clients with enhanced digital capabilities that allow elements of selfservice are more likely to speak to their WM face-to-face and value the interaction more.”

The research – made available through Objectway – also highlighted hybrid advice models often result in higher client satisfaction, as they meet the need for both personalisation and convenience. “A more personalised customer experience should lead to better outcomes for the customer and the firm and more operational efficiency as the return on investment will be greater,” Mr Khan explained.

Wealth managers seem to be embracing the hybrid structure for now which is leaving more time for firms to focus on the client relationship.

Despite the risks, “AI can bring humanity closer together”, Mr Charles concluded.