Gen AI gathers momentum as wealth firms scale digital plans

A rising share of wealth management firms are putting significant resources into generative artificial intelligence, according to a new global survey of financial services executives conducted by Broadridge.

The fifth edition of Broadridge’s Digital Transformation and Next-Gen Technology Study draws on input from 509 senior leaders in technology and operations across wealth management, capital markets and asset management.

Nearly half of the respondents were based in North America, with the remainder divided between Europe and Asia-Pacific. The average respondent firm reported $83 billion in assets under management.

Among the standout findings in the report, 72 percent of firms indicated they were making moderate to large investments in generative AI in 2025 – up from 40 percent the previous year.

That investment trend aligns with broader enthusiasm around AI more generally: 86 percent of firms plan to increase spending on artificial intelligence over the next two years.

In operational terms, generative AI is already being deployed to support a range of goals. Thirty-five percent of firms expect to see a return on investment within six months, though others anticipate a longer timeline. One-third of respondents projected it would take one to two years to realize a payback, while nearly one-fourth believe the timeline will extend to three to four years.

Firms are mostly looking to generative AI to reduce costs and increase efficiency, cited by 29 percent of respondents. Another 28 percent said the technology could help improve the customer experience, while 19 percent pointed to enhancements in employee experience.

According to the report, “One of the bright spots in the digital transformation journey for most financial firms has been the widespread adoption of AI, specifically generative AI, within everyday workflows.”

At the same time, many institutions remain cautious. Seventy-four percent of respondents said generative AI should be subject to tighter regulation.

The most common barriers cited by firms that were slower to adopt the technology included uncertainty around the maturity of generative tools, lack of confidence in return on investment, and policy or regulatory limitations.

While artificial intelligence has risen to the third most frequently used technology in financial firms’ operations – behind only cloud platforms and cybersecurity tools – success with generative applications still appears to hinge on internal alignment.

“We’re seeing a re-baselining of the expectations for what AI can deliver as people get increasingly more comfortable with incorporating it into everyday tasks,” Joseph Lo, Broadridge head of enterprise platforms, said in the report.

The report also showed that financial firms are expected to allocate 29 percent of their total IT spending to technology innovation over the next two years, up from 22 percent in 2024. GenAI-related initiatives appear to be a core driver of that shift.