In the early 20th century, cars were dismissed as impractical by many who preferred their trusty horses. Fast-forward a century, and no industry operates without the infrastructure cars made possible. Today, wealth management firms face a similar turning point with artificial intelligence (AI). Those who adapt early will reap the rewards of transformation, while others risk being left behind.

Accenture’s AI in Wealth Management: A Financial Advisor Study highlights the urgency of this shift, revealing that 83% of financial advisors anticipate AI will have a direct, measurable impact on client relationships within 18 months (Accenture, 2024). Yet, despite this optimism, many firms are unprepared for AI’s demands. Access the full study.

Boston Consulting Group’s Global Wealth Report 2024 echoes this, emphasizing that firms prepared for AI adoption will outperform their peers, especially as global financial wealth continues to rebound, growing 7% in 2023 after a decline in 2022 (BCG, 2024). Learn more from BCG.

The Readiness Gap

AI’s potential to transform wealth management is undeniable. From automating tasks to offering predictive insights, its benefits are vast. However, the Generative AI: Transforming Wealth and Asset Management report by EY notes that “less than 30% of firms have the data governance structures necessary to fully leverage AI” (EY, 2024). Explore EY’s insights.

Key challenges include:

• Fragmented Data Systems: Without unified data, AI tools cannot deliver consistent insights.

• Lack of Skilled Resources: Many firms lack the technical expertise to implement AI solutions.

• Unclear Strategy: Firms without a roadmap struggle to align AI investments with business goals.

Milemarker: Bridging the Gap

Milemarker is helping wealth management firms address these readiness challenges through its tailored solutions. By conducting a comprehensive technology audit and creating a data strategy roadmap, Milemarker ensures firms are prepared to integrate AI seamlessly.

The Milemarker Data Model plays a pivotal role in unifying fragmented systems, providing a single source of truth for firms to act on. Additionally, Milemarker’s focus on automation allows advisors to optimize workflows and free up time for strategic planning.

“Our mission is to remove barriers to AI adoption,” says Jud Mackrill, Cofounder at Milemarker. “We provide firms with the tools and insights they need to thrive in an AI-driven future.”

Preparing for the Future

The wealth management industry is undergoing rapid transformation. Firms that embrace AI now will have a significant advantage in a competitive market. EY’s report emphasizes that AI isn’t just about technology—it’s about scalability, personalization, and efficiency.

With Accenture noting that 77% of advisors already use AI tools, the time to invest in readiness is now. Firms that lag behind risk missing out on the opportunities AI offers to improve client experiences, reduce costs, and drive growth.

Your Next Step

For wealth management firms, readiness is the key to staying competitive in a rapidly changing landscape. Milemarker’s solutions are designed to ensure firms can integrate AI effectively, providing a roadmap to success in an AI-driven world.

Whether you’re starting your AI journey or looking to enhance your existing capabilities, Milemarker is your partner in building a future-ready firm.

References:

• Accenture. AI in Wealth Management: A Financial Advisor Study. 2024. Available at: https://www.accenture.com/in-en/insights/capital-markets/wealth-management-artificial-intelligence-all-systems-go.

• EY. Generative AI: Transforming Wealth and Asset Management. 2024. Available at: https://www.ey.com/en_us/insights/financial-services/generative-ai-transforming-wealth-and-asset-management.

• Boston Consulting Group (BCG). Global Wealth Report 2024: The Gen AI Era Unfolds. 2024. Available at: https://www.bcg.com/publications/2024/global-wealth-report-the-gen-ai-era-unfolds.