Wealth Management Increasingly Turns to AI

- The global market for AI in asset management was valued at $3.8 billion in 2025 and is projected to grow at a compound annual growth rate of over 27.7% between 2026 and 2034. - A recent survey found that 91% of investment managers are either currently using (54%) or planning to use (37%) AI in their investment strategy and research. - JPMorgan Chase has committed $18 billion to technology in 2025, with a significant focus on AI, and has already provided its 200,000 employees with access to a proprietary large language model suite. - Morgan Stanley has developed several AI tools for its advisors, including the "AI @ Morgan Stanley Assistant" for quick information retrieval and an "AI @ Morgan Stanley Debrief" tool that summarizes client meetings. The firm reports that 98% of its wealth management advisors are actively using its AI chatbot. - AI is being used to automate administrative tasks, which can free up financial advisors to spend more time on client-facing work; currently, only 58% of an advisor's time is spent on direct client interaction. - AI algorithms can analyze market data, economic indicators, and a client's risk profile to construct optimized investment portfolios and simulate thousands of scenarios to help minimize risk and maximize returns. - "Robo-advisors," which provide automated, algorithm-driven investment advice, are expected to see assets under management grow from $2.5 trillion in 2022 to a projected $5.9 trillion by 2027. - AI-powered CRM (Customer Relationship Management) platforms can analyze client communication sentiment, account activity, and other behaviors to generate "churn risk indicators," allowing advisors to proactively address client concerns.