The Rise of Generative AI in Wealth Management
In the evolving landscape of financial services, generative artificial intelligence (AI) is making waves, reshaping how firms operate, compete, and serve their clients. Germán Soto Sanchez, the Chief Product and Strategy Officer at Broadridge Financial Solutions, emphasized this point, stating, “The acceleration of generative AI is foundational to how firms operate, compete, and serve clients.” His insights come at a pivotal time as the wealth management industry increasingly adopts advanced technologies.
Generative AI Surpassing Cloud Technology
A recent study by Broadridge, titled the Digital Transformation and Next-Gen Technology Study, reveals that generative AI’s influence has overtaken that of cloud technology within the wealth management sector. Surveying over 900 technology and operations leaders from various financial services areas, the study highlights a significant shift in priorities. An impressive 28 percent of respondents identified generative AI as the most impactful technology on their businesses, marking a 17 percentage point increase from the previous year. In comparison, cloud technology saw a decline in recognition, with only 21 percent citing its impact—down from 31 percent in the 2025 report.
Insights from the Survey
The 2026 study also shed light on other technologies vying for attention within the industry. Cybersecurity emerged as the most impactful technology for 23 percent of respondents, up from 13 percent in the last study, indicating an increasing focus on protecting sensitive data. Also mentioned was the concept of tokenization, which remained steady at 3 percent, while a new entrant, agentic AI, was identified by 8 percent of survey participants.
Tokenization represents a “megatrend” in the industry, propelled by the growing interest in cryptocurrencies. More than half of the surveyed firms reported making substantial investments in digital asset infrastructure and tokenization, reflecting the industry’s shift toward advanced financial instruments.
AI Reshaping Operations
Soto Sanchez elaborated on the transformative nature of generative AI, stating, “By moving beyond simple content generation to intelligent workflow execution, AI is reshaping day-to-day operations.” This evolution suggests that AI is not merely a tool for automation but a comprehensive solution capable of enriching operational strategies. The integration of generative AI allows firms to execute complex workflows efficiently, enhancing productivity and client servicing.
An Example from the Industry
Recent developments in the industry bolster this trend. For instance, Raymond James Financial, Inc. made headlines earlier this year by unveiling a proprietary AI operations agent that leverages generative AI. Such initiatives demonstrate a broader commitment to harnessing technology to enhance operational efficiency and service delivery.
Mixed Feelings Towards Generative AI
While enthusiasm for generative AI is palpable, not all industry professionals are completely at ease. A study conducted by Morningstar found that while many advisors anticipate significant benefits from generative AI, there remains a notable apprehension about its implications. More than one-third of respondents viewed generative AI as a means to boost efficiency, yet nearly half expressed uncertainty about its prospective impact on their practices. This ambivalence reflects a cautious optimism that characterizes much of the industry.
Future Directives
As generative AI continues to gain traction, firms are encouraged to navigate this technological landscape thoughtfully. The conversation surrounding AI is not merely about its capabilities but also about addressing the concerns that come with it. As firms accelerate their digital transformation strategies, generative AI stands out as a key player, promising to redefine the wealth management industry in profound ways. The journey ahead will require balancing innovation with the reassurance of human advisory services, ensuring clients receive the high-touch service they expect in a rapidly digitalizing world.
