The study collected data from 300 wealth managers and 3000 investors globally, revealing that 87% of UK wealth managers believe that AI is integral to their industry, and will change wealth management for the better.

When asked the specifics of where AI support would be effective, 86% of UK wealth managers stated it would be in client onboarding, 65% in summarising client meetings, 64% in automated compliance monitoring, and 61% in automated regulatory checks.

However, there is still a clear lack of trust in AI technology, the report revealed. Research found that 24% of wealth managers don’t believe their clients will trust AI for investment, and 27% believe their clients would not trust AI for financial planning.

UK investors responded similarly, with only 7% responding that they would rely on AI for investment advice, 38% willing to use AI tools along with support from their wealth manager, and 55% unwilling to use AI in any form for investment advice.

Gery Zollinger, head of data science and analytics at Avaloq, stated: “UK wealth managers recognise the enormous potential for AI to support them. The potential use cases are vast, from automated processes which free up more time for managers to focus on clients and strategic decision-making to streamlined analytics and cost-effective services that expand access to advice.

“That said, there is still clearly a way to go when it comes to bridging the AI trust gap between wealth managers and their clients. For AI to be successful from a client perspective, wealth managers need to work closely with their clients to demonstrate the value AI can bring to their portfolios, while ensuring that the use and impact of the technology remain transparent and well-understood. AI can augment the service advisers provide to their clients, but the human element will always be vital.”