Financial Services

Embracing the power of AI in wealth management

The global financial market collapse of 2007-2008 affected economies worldwide. Those with inadequately diversified portfolios, significant exposure to high-risk assets, or precarious investments in mortgage-backed securities experienced severe repercussions, with their portfolios plummeting by almost 30%. The repercussions extended beyond investment portfolios, impacting retirement accounts and overall net worth.

Case in point: Without professional guidance in wealth management, decisions are suboptimal and consequences serious.

Wealth management is a comprehensive financial advisory service that addresses the financial needs of high-net-worth (HNW) individuals, families, and businesses. It helps them grow, protect, and transfer their wealth and involves the coordination of various financial disciplines, including investment management, retirement planning, tax planning, estate planning, and risk management.

Efficient wealth management offers financial security and puts people at ease—money-wise. Here’s how:

Financial goal achievement: Wealth management helps align financial strategies with an individual's specific goals, including buying a home, funding education, retiring comfortably, etc.

Risk mitigation: This concerns advising clients about asset protection. It includes strategies for insurance, investment diversification, and overall risk management to withstand economic uncertainties.

Tax efficiency: Wealth management includes proactive tax planning to minimise tax liabilities and optimise financial efficiency. Strategies may involve tax-advantaged investments, deductions, and other methods to preserve wealth and increase after-tax returns.
Retirement planning: Wealth management professionals help their clients create retirement plans so that the clients can maintain their desired lifestyle during their retirement years. This includes optimising retirement account contributions, investment strategies, and income distribution planning.

Estate planning: To preserve for future generations, wealth management helps with the orderly transfer of assets to heirs with minimised estate taxes and legal complications.

In short, wealth managers provide expert guidance on strategic investment planning, navigating financial complexities and tailoring portfolios to clients' risk tolerance and financial goals. Their holistic approach, addressing debt management, cash flow, and emergency funds, establishes a robust foundation for monetary security.

The transformative power of AI

Customers' expectations of their financial advisors are rising significantly, and technology is essential to fulfilling these demands. Wealth management AI solutions are swiftly becoming popular, with approximately two-thirds of fintech companies already incorporating them to varying extents.

Generative AI solutions enhance various aspects of wealth management, including the following:

Investment research:

AI streamlines investment research, a pivotal component of wealth management, by analysing market data to detect trends and potential investment opportunities. This enhances the precision of investment decisions.

Market sentiment analysis:

AI algorithms can sift through news, social media, and other sources to gauge market sentiment. This information can be crucial in making informed investment decisions by understanding how external factors may influence the market.

Portfolio management:

AI-poweredrobo-advisors can automatically create and optimise asset allocations.


AI analyses client behaviour and preferences to gain insights into their investment patterns, risk tolerance, and communication preferences. This information helps tailor services and communications according to client needs.

Performance monitoring:

AI tools can monitor the performance of investment portfolios in real time. This includes tracking the performance of individual assets and assessing the overall health of the portfolio.

Client-advisor relationship:

AI automatically tracks (and logs) client information, monitors client accounts for activity that suggests advisory opportunities, and runs quantitative analyses on a client's financial picture to suggest opportunities for improvement. This enhances the efficiency of wealth advice given and fosters successful advisor-client relationships with a personal touch.


AI addresses complex tax and regulatory scenarios, aiding tax-efficient strategy planning and management. This ensures maximum returns while staying compliant with tax laws.

Tax assessment:

AI unravels complex tax and regulatory scenarios and aids tax-efficient strategy planning and management, ensuring clients maximise returns while staying compliant with tax laws.

24/7 availability:

Virtual assistants and robo-advisors allow clients to access information, make inquiries, and manage their investments at any time.

Fraud detection and security:

AI algorithms continuously monitor transactions and account activities, detecting anomalies and potential fraud in real-time. The wealth management platform and client assets are both safeguarded at all times.

The possibilities are limitless. The introduction of ChatGPT has positioned Generative AI to assume mundane tasks, such as analysing files, creating

charts, and compiling information, typically carried out by data analysts and knowledge workers.

However, it is crucial to emphasise that these tools are usually crafted to enhance human expertise rather than replace it. While they excel at handling data, the incorporation of qualitative factors still requires human intervention.


AI has entered wealth management, heralding a transformative era in the financial landscape. While its data-handling capabilities bring immense value to the sector, the human touch remains irreplaceable in interpreting nuanced qualitative factors, adapting to dynamic market conditions, and fostering strong client-advisor relationships. The future of wealth management lies in a harmonious collaboration between cutting-edge AI technologies and human expertise, ensuring a holistic and personalised approach to financial success.

How Infosys BPM can help

Idle money is a missed opportunity. At Infosys BPM, we believe that true financial freedom and security come when money can make more money, and AI is instrumental in realising this vision. Explore the possibilities of Generative AI for wealth management through our services and prepare to be impressed.

Recent Posts