Two Decades ago, the British mathematician Clive Humby said: “Data is the new oil”. Today, artificial intelligence (AI) serves as a refinery, transforming vast unstructured data into powerful information that warms up industries.
Although AI in financial services is not new – approaches such as feelings of feelings, regression models and automatic learning have been used since the 1980s – the pace of innovation and accessibility has increased considerably. The advent of large languages models, associated with decreasing costs and an innovative approach to the user experience, has transformed the AI of a niche tool into a democratized capacity.
At the World Economic Forum 2025 in Davos, the Swiss financial innovation office highlighted the role of AI as “brain of the financial systems of tomorrow” in its Pathway 2035 for financial innovation report.
Beyond chatbots
Initially, companies adopt pre-constructed AI tools for data processing and customer interactions, although these applications are often autonomous. The next phase is to optimize AI for efficiency, where companies refine information focused on AI, automate compliance and improve portfolio monitoring, using AI as operational catalyst.
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The most out-of-the-art companies are progressing towards the transformation of IA-focused commercial models, integrating AI at the heart of their business, redefining the role of human advisers. However, even if AI reshapes the role of human advisers, many banks opt to have a “human in the loop” to ensure the surveillance of experts, to mitigate the risks of erroneous interpretation and maintain responsibility for AI results.
Despite the enthusiasm of AI, adoption remains unequal. An accentuation study has revealed that, even if 80% of wealth managers expect the AI to reshape the advisory services by 2026, only 30% have implemented AI investment decision -making.
This difference between aspiration and execution underlines a critical distinction: do companies simply react to AI trends, or do they actively shape them? Those who remain passive may be overwhelmed by competitors who not only implement the AI, but who also rethink their commercial models around him.
Hyper-personalization: the competitive advantage of the AI
AI’s ability to process large sets of data allows monitoring of macroeconomic trends, identifying changes that have an impact on investment strategies before competition. It also facilitates the detection of risk signals, allowing proactive adjustments by identifying early alert panels in customer wallets. In addition, AI supports hyper-personalized advice, offering tailor-made recommendations based on real-time analysis of market conditions and customer behavior.
Traditionally, heritage management is based on solid relationships, but AI is revolutionizing the way these relationships are established and maintained.
AI considerably affects three key areas: customer information, portfolio optimization and operational efficiency.
Thanks to hyper-personalization led by AI, wealth managers can better anticipate customer needs, by identifying optimal times for portfolio adjustments and investment opportunities. The AI advanced models detect models through asset classes, allowing precise management of risks and asset allocation strategies. In addition, AI automates compliance monitoring, customer declaration and administrative tasks, allowing human advisers to focus on strategic decision -making.
From niche to necessity
The wealth management industry has traditionally been slow to adopt disruptive technologies, due to its nature focused on relationships. But staying static is equivalent to delay. The rapid pace of the progress of AI requires that companies are continuously updating and refining their best practices to remain relevant.
We are making significant progress in AI by experimenting with agental IA executives. These autonomous AI agents collect, process and interpret data, generating valuable information for customer portfolio journals. This technology rationalizes the value chain and improves efficiency without compromising human expertise to which customers have confidence.
Imagine a scenario where an advisor no longer needs to manually sift endless reports, but rather receives AI alerts on AI, potential market alerts can occur. It is not a distant future; It is current reality.
The Singapore financial services sector, contributing to more than 14% of the gross domestic product, must go from the experimentation of AI to the integration of large scale AI. The country’s GDP growth of 4.4% in 2024, compared to 1.8% in 2023, underlines an economy which adopted digital transformation and financial innovation.
The critical question for wealth managers is not whether AI will transform the industry, but which will direct this transformation. Companies that adopt a proactive approach, invest in AI capabilities and innovate continuously will give the pace. Those who hesitate will be on the sidelines while IA-STIF companies establish new references in wealth management.
The writer is the head, global innovation, Julius Baer