Is Artificial Intelligence Set to Dominate the Future of Finance?

The appeal of artificial intelligence (AI) compared to other technologies is undeniable, ranking as the top technology priority for the second consecutive year (see graphic below). Data analytics for value capture retained its place within the top three, moving up to joint second in 2024. Cloud technology has moved from fifth in last year’s ranking to joint second this year, demonstrating the importance that data, and the way that it is managed, distributed, and consumed, holds to financial institutions.

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For asset managers, data continues to dominate the technology targets, though in a different form. Last year, it was data analytics for value capture, compared to the integration and provision of data through APIs that takes the top spot in this year’s survey. Similarly, wealth managers have turned their attention to data analytics, which moved from fifth to first. It is closely followed by the integration of AI remaining in their top three priorities.

For investment banks, the technologies that have dominated the headlines over the past year remain top of their priority lists, with AI and the integration of distributed ledger technology (DLT) in joint first place. This recognition of the potential that AI holds is echoed by those based in Singapore, Switzerland, and the UK, identified as the main technology focus.

Although the implementation of AI ranks as the top technology priority for consecutive years, the ways in which senior executives anticipate it delivering the most client value have changed. Where last year we saw a clear preference for deploying AI in the value domain, this year, it has firmly shifted to a efficiency- and cost-led mindset.

Automated compliance and regulatory reporting are identified as the key areas for this technology to provide client value (see graphic below). Senior executives are showing optimism for the role that AI can play in the middle and back office to make core operational tasks more efficient and reliable.

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There is agreement among asset managers, wealth managers, and investment banks that compliance and regulatory reporting represent the areas where AI can deliver the most client value, rising from third to first, one year after our last survey.

With the global drive for increased transparency over the past decade resulting in more regulatory reporting requirements for all financial institutions, it is possible they are recognizing the potential that AI holds to support this. When fed with high-quality data to process, AI can provide an opportunity to automate large portions of the reporting process for both regulatory and client reports.