84% of Wealth Management Firms Must Redesign for AI: HCLTech
HCLTech study reveals 84% of wealth management firms must redesign operating models to harness AI potential, while few track revenue impact.
A groundbreaking study by HCLTech has revealed a massive disconnect in the wealth management sector regarding the integration of artificial intelligence. According to the research, 84 per cent of global wealth management firms believe their current operating models require a fundamental redesign to truly unlock the potential of AI technology.
Despite this urgent need for structural change, the industry is struggling to translate AI adoption into tangible financial success. The study highlights a stark reality: while almost every firm is investing in the technology, only 12 per cent are actually measuring whether these changes are driving new revenue.
The Gap Between Ambition and Execution
The HCLTech report, titled “Hidden In Pl(AI)n Sight,” utilized AI-based synthetic research, modeling 1,066 representative AI personas based on senior decision-makers across 17 global markets. The findings suggest that the industry's primary hurdle is no longer just about adopting new tech, but about how businesses restructure their operations and measure outcomes.
HCLTech identified three critical gaps preventing firms from reaching their full AI potential:
- The Ambition Gap: Firms recognize the need for transformation but continue to fund AI initiatives primarily for simple efficiency gains rather than radical business shifts.
- The Execution Gap: Significant technology investments are being made, but they are not being matched by necessary investments in proprietary client data and actionable insights.
- The Strategy Gap: Companies are tracking how much AI they have adopted, but they are failing to measure its actual impact on client value, growth, and revenue models.
A Problem of Choice, Not Investment
Srinivasan Seshadri, Chief Growth Officer and Global Head of Financial Services at HCLTech, noted that the industry does not suffer from a lack of funding. Instead, it faces a "choices problem."
"Nearly every wealth management firm is spending on AI. Far fewer can say which programs they are funding, how far AI actually reaches into the operating model, or whether they're measuring the outcomes that matter — new client value, growth and revenue models," said Seshadri.
The data further shows a significant disparity in technical capability. While 98 per cent of leadership teams are actively pursuing an AI agenda, only slightly more than 7 per cent are actively building agentic AI capabilities.
Data and Human Expertise: The Real Differentiators
As firms look toward the future, the research suggests a shift in what will define market leaders. Interestingly, executives ranked first-party and behavioural data as a more valuable differentiator than traditional factors like cloud platforms, technology infrastructure, or AI partnerships.
Looking ahead, the study concludes that the future leaders of the wealth management industry will likely be those who master the synergy between three core pillars:
- Advanced Artificial Intelligence
- Deep Human Expertise
- Robust Ecosystem Partnerships
The research was conducted by HCLTech in partnership with Evidenza, involving subject matter experts to ensure the validity of the persona designs and research development.