15 April 2024

AI in Focus | Perspectives from SS&C Salentica

By Tanya Tygesen

As we move into the second quarter of 2024, the wealth management landscape is poised for significant evolution, with a spotlight on key areas driving transformative change. This year began with an uptick in clients inquiring about AI, including workflow automation and predictive analytics. This trend indicates a broader movement within wealth management firms to explore AI, either through implementations in actual projects or starting conversations with peers, industry experts, and vendors.

Preparing for AI Integration

Exploration of AI comes with the increased need for wealth management firms to understand the current state of their data. Firms seeking to take advantage of the insights, automation, and analytics AI can provide must often implement new data governance procedures. As firms continue to invest in technology that helps them grow and be more competitive, they will likely need to add headcount in their operational and technical teams.

Yet, amidst these transformative endeavors, it's important to recognize that meaningful engagement with AI doesn't necessarily require embarking on monumental projects. There are many avenues through which individuals within these firms can contribute to the exploration and adoption of AI in ways that resonate with their respective roles and responsibilities. This inclusive approach fosters a culture of innovation and collaboration, empowering every member to play a meaningful part in driving the organization toward AI-driven success.

Strategic Imperatives

Regulations on AI in wealth management are still evolving. Firms must remain vigilant and adaptable to ensure compliance with emerging regulations while seizing opportunities to shape regulatory frameworks through proactive engagement and advocacy efforts. ‘Responsible AI’ is a growing field and area of study and will continue to build on and shadow the rapid pace of AI development.

Against the backdrop of continued merger and acquisition activity within the industry, the imperative to modernize and integrate new technologies has never been more pronounced. Firms that proactively embrace technological advancements enhance their attractiveness in the M&A arena and fortify their competitive positioning in an ever-evolving marketplace. The convergence of AI exploration, technological modernization, and regulatory compliance underscores the pivotal juncture at which wealth management firms find themselves, necessitating strategic foresight and decisive action to navigate the complexities and seize the opportunities that lie ahead.

As wealth management firms explore AI, the role of Customer Relationship Management (CRM) software emerges as a key enabler in navigating the complexities of AI integration. CRM systems not only facilitate data governance and analysis but also serve as a central hub for fostering collaboration and driving client engagement strategies. Leveraging an effective CRM also empowers firms to harness the potential of AI-driven insights while ensuring compliance with evolving regulations. At SS&C, our CRM solutions support firms' journey toward AI-driven success and the full spectrum of opportunities that lie ahead.

At SS&C Salentica, we help firms implement and customize their CRM, including workflow automation to help streamline operations. To learn more about the solutions that may best fit the unique needs of your firm, request a personal demo by calling 800-727-0605 or email info@salentica.com.