Bridges have always played a vital role in solving problems of access and opportunity. From ancient Roman aqueducts to modern engineering marvels, they connect people and enable progress. In wealth management today, the gap between AI’s potential and practical implementation is one that must be bridged—and the key to doing so lies in a strong data strategy.

Accenture’s AI in Wealth Management: A Financial Advisor Study reveals that while 77% of financial advisors are already using AI tools, many lack the necessary infrastructure to make AI work effectively (Accenture, 2024). This disconnect is a missed opportunity, as firms without the right foundation struggle to generate actionable insights and drive meaningful results. Access the full study.

Understanding the AI Gap

The Generative AI: Transforming Wealth and Asset Management report from EY highlights that less than 30% of firms have adequate data governance and infrastructure to fully utilize AI’s capabilities. “AI is only as effective as the data feeding it,” the report states, emphasizing the need for unified, high-quality data sources (EY, 2024). Explore EY’s findings.

Boston Consulting Group (BCG) echoes this in its Global Wealth Report 2024, emphasizing that firms with robust data strategies are better positioned to capitalize on AI’s growth opportunities. “Data readiness has become a competitive advantage,” BCG notes, especially as global financial wealth grew by 7% in 2023 after a decline the previous year (BCG, 2024). Learn more from BCG.

The Components of a Strong Data Strategy

1. Centralized Data Infrastructure: Tools like data lakes and warehouses enable firms to consolidate disparate systems and create a single source of truth.

2. Data Governance: Clear protocols for data collection, storage, and access ensure consistency and compliance.

3. Automation: Streamlining repetitive tasks frees up resources for strategic initiatives.

4. Advanced Analytics: Predictive models and AI tools depend on high-quality, unified data to deliver insights.

Milemarker: Closing the Gap

Milemarker specializes in bridging the AI gap by providing a comprehensive data strategy roadmap and proprietary solutions like the Milemarker Data Model. Here’s how Milemarker helps:

• Technology Audits: Assess current systems and identify gaps in infrastructure and workflows.

• Data Integration: Unify data from multiple sources to create a reliable, centralized platform.

• Workflow Optimization: Use AI tools to automate repetitive tasks and improve efficiency.

• Strategic Insights: Enable firms to generate actionable insights and deliver better client outcomes.

“Our mission is to ensure firms can transition from AI ambition to AI action,” says Jud Mackrill, Cofounder at Milemarker. “With the right data strategy in place, advisors can unlock AI’s full potential.”

The ROI of Closing the AI Gap

Accenture’s study highlights that 97% of advisors believe AI can grow their business by 20% or more when implemented effectively (Accenture, 2024). Firms that invest in data infrastructure today will not only improve their operational efficiency but also deliver better client experiences and long-term growth.

For one Milemarker client, implementing a tailored data strategy resulted in a 50% reduction in reporting time, enabling the team to focus on high-value client interactions. This real-world impact underscores the importance of investing in data readiness.

Bridging the Future

The wealth management industry is at a crossroads. Firms that embrace a robust data strategy will be best positioned to leverage AI’s transformative capabilities, closing the gap between potential and performance.

Milemarker’s expertise ensures your firm is ready to bridge this gap, unlocking new opportunities and delivering lasting results in an AI-driven world.

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.