Nearly two thirds (62%) of UK advisers are comfortable with the concept of agentic AI being used in investment platforms, but this openness to AI contrasts with the practical realities of deploying it safely, says GBST.
The wealth management technology provider said that for highly regulated firms, agentic AI will need to be embedded in existing controls and governance. While it offers significant opportunities to improve efficiency and speed up processes, it will only work within strict limits and controls.
GBST has identified five ways it believes AI will impact wealth management and platform technology over the next two years.
Firstly, regulation will set the pace of AI adoption. Wealth managers have a responsibility to provide outcomes that are explainable, repeatable and auditable. This is driving demand for AI that operates effectively within existing control frameworks, rather than tools that are bolted on the side, the firm said. Secondly, AI will take on complex manual work in areas investors never see. Agentic AI will enable firms to automate complex, high-volume wealth administration processes that are currently largely manual.
Thirdly, AI will be controlled, not autonomous. Highly regulated environments need AI that is designed to carry out tightly defined tasks, following the same permitted sequence every time and deferring to human judgement.
Additionally, GBST believes transparency will decide which AI solutions scale and which will fail. It says firms need to understand each step taken and how decisions are made and only AI systems that are designed to be transparent and auditable will be used in a regulated environment.
Finally, the firm expects AI to sit inside core platforms. Currently, many tools sit outside core systems which can create challenges with integration and oversight and add another layer of complexity, however, wealth managers increasingly want AI embedded into the platform itself, within the existing safeguards that protect customers.
Rob DeDominicis, CEO of GBST, said: “At the moment, there’s too much focus on the disruption AI could cause and not enough on how it can be used safely to transform complex, manual processes.
“Platforms and wealth managers in the UK have come a long way in automating routine processes in the last 15 years, but human intervention is still required in too many situations, adding risk, cost and delay. AI can deliver the next round of efficiency, but only if it operates within existing controls, executing processes consistently and transparently.
“Firms are starting to move away from AI experimentation and are looking for real operational impact. But for AI to become genuinely valuable, we need it to meet required industry standards. We’re responsible for millions of people’s long-term financial security so there’s no room for shortcuts.”
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