When the first electric cars hit the market, they promised a cleaner, more sustainable way to travel. But without charging stations, their potential was limited. The same holds true for artificial intelligence (AI) in wealth management: it’s powerful, but without the right data infrastructure—such as data lakes and warehouses—it won’t get very far.

According to Accenture’s study, AI in Wealth Management: A Financial Advisor Study, while 77% of financial advisors are already using AI tools, many still lack the necessary infrastructure to generate actionable insights. The study emphasizes that foundational elements like data lakes and warehouses are critical to fully leveraging AI’s capabilities (Accenture, 2024). Access the full report.

This is echoed in EY’s 2024 report, Generative AI: Transforming Wealth and Asset Management, which warns, “AI’s potential is immense, but its effectiveness is hindered when firms lack unified, high-quality data sources” (EY, 2024). View EY’s insights here.

Why Data Infrastructure Matters

AI thrives on data. Tools that offer predictive analytics, customer segmentation, and portfolio optimization need vast amounts of high-quality data to function effectively. However, many firms still rely on fragmented systems that create bottlenecks, reducing the value AI can deliver.

Boston Consulting Group (BCG) highlights that financial wealth—a subset of global wealth—rose by almost 7% in 2023 after a decline of 4% in 2022. BCG notes that firms embracing AI and proper data strategies stand to capitalize on this growth (BCG, 2024). Explore BCG’s report.

Data lakes and warehouses play a pivotal role in centralizing information and creating a “single source of truth.” With these technologies in place, advisors can provide clients with personalized, data-driven recommendations and insights that were previously unattainable.

How Milemarker Solves the Data Gap

Milemarker is uniquely positioned to help wealth management firms address this data gap. By offering a tailored data strategy roadmap and implementing proprietary solutions like the Milemarker Data Model, Milemarker enables firms to harness their data effectively and prepare for the future of AI.

The Milemarker Data Model simplifies the process of integrating disparate systems, creating a seamless experience for advisors. With a robust technology audit as part of its offering, Milemarker ensures firms are ready to adopt AI tools and maximize their return on investment.

“Milemarker doesn’t just provide tools; we provide the foundation for firms to thrive in an AI-driven future,” says Jud Mackrill, Cofounder at Milemarker.

The ROI of Better Data

Investing in data infrastructure isn’t just about technological readiness—it’s about achieving measurable business outcomes. According to Accenture, 97% of financial advisors believe AI can grow their book of business by over 20% (Accenture, 2024). However, without proper infrastructure, this growth potential remains untapped.

EY’s report underscores this point: “Firms with strong data governance and infrastructure are better positioned to deliver client outcomes and drive operational efficiency” (EY, 2024).

Your Next Step

For wealth management firms ready to take their AI capabilities to the next level, investing in data infrastructure is non-negotiable. With Milemarker as a partner, firms can close the gap between ambition and reality, ensuring their data is ready to power the tools of tomorrow.

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.

• Milemarker.co, “Data Strategy and AI Solutions for Wealth Management,” accessed November 2024.