Generative artificial intelligence is increasingly a priority for asset managers: A recent study by financial technology company Broadridge Financial Solutions Inc. found that 72% of surveyed financial firms reported making “moderate to large” investments in GenAI, up from 40% in last year’s study.
An average of three in five (63%) of 175 asset managers reported using GenAI. Broadridge’s overall survey of 509 global financial technology and operations leaders found that more than two-thirds of respondents’ firms used GenAI. More than two-thirds of participants who used GenAI expected to see a return of investment within two years, including 35% who expected ROI within six months.
Asked how they used GenAI, 47% of surveyed asset managers relied on AI chatbots to improve customer service, and 43% used AI to improve marketing and external communications. Overall, 26% of surveyed firms reported using GenAI models to improve client experience.
As for primary reasons for using GenAI tools, the most-cited were cost reduction and greater operational efficiency (shared by 29% of respondents), improving customer experience (28%), and improving employee experience (19%).
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Of firms that had not yet adopted GenAI, 57% said they wanted the technology to mature, 45% had doubts about ROI, and 24% said they had insufficient budget.
Client Personalization Is a Major Challenge
More than half—52%—of respondents said their biggest customer experience challenge was the ability to personalize content. Siloed departments, data and technology made 59% of participants concerned about their improving personalized client engagement and the impact on digital and print communications.
Even with straightforward customer choices like whether to go paperless, 57% of respondents said their firms still sent print communications to clients who had already opted out.
“Firms will have multiple relationships with the same customers through things like direct deposit accounts, credit and debit cards, mortgages, and even life insurance and wealth management accounts. … They’re often running off their own [separate] legacy platforms,” said Matt Swain, Broadridge’s head of insights and experience, in the report. “It’s very rare to find a level of digital maturity where the various business lines and their discrete platforms are truly connected.”
Among asset managers surveyed, 50% said legacy technology and processes kept them from delivering stronger customer experiences, and 62% said siloed technology and data impacted enterprise-wide customer experiences.
Phronesis Partners, on behalf of Broadridge, conducted an online survey with 509 financial tech and operations leaders worldwide from December 17, 2024, through January 31, 2025, with 49% from North America, 26% from Europe and 25% from the Asia-Pacific region. The survey was supplemented with eight qualitative interviews.
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Tags: Artificial Intelligence
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