Andrews emphasized how AI will supercharge the client-advisor relationship and why firms that invest in forward-thinking strategies will be the most successful.

Benefits of AI range from automating repetitive tasks, providing data-driven advice in specific areas such as portfolio optimization, risk management and tax analysis.

Andrews believes that the focus will be on using technology to modernize investors' experience. “The better the experience, the more clients will pay for it,” he told this news service in an interview. “AI will have a big role to play, as there is only so much humans can do.” But he noted that AI cannot replace the human touch in wealth management; AI will just help them to deliver better outcomes.  Andrews thinks that human-driven advice from wealth managers is here to stay. This has also been highlighted by Annabelle Bryde, managing director and head of UK Private Bank and Crown Dependencies at Barclays Private Bank.

“There is also currently not the right data in wealth management to achieve the goals. Without having the right data, AI cannot achieve its objectives,” he said.

However, Andrews emphasized that wealth management firms are more serious this year about creating a data strategy. “Systems are starting to age and there is a big drive in wealth management to look at the technology stack. The cost of labor is also rising, squeezing wealth managers margins, and they are looking at how to get their margins on target,” Andrews said. “The macroeconomic environment is also challenging, with high interest rates, and elections are coming up.” 

In view of this, Andrews believes that AI will play an increasing role in the future to help wealth managers achieve their goals. But he thinks that there is still a long way to go, as the right data is needed, and it will take time. “There will be some big shifts in wealth management in the next one to two years, with more consolidation in the market. It’s an exciting market to be in,” he concluded.

FIS, a US multinational known for its development of financial technology, works with world banks and private equity firms to help them move money and innovate for their customers. Before joining FIS, Andrews was at BNY Mellon. See more commentary here and here about the role of AI in wealth management.