Financial services revenues could see 52% boost from AI adoption, report finds

Financial services revenues could see 52% boost from AI adoption, report finds
Advisors and other client-facing teams gaining from technological transformation.
NOV 13, 2024

Financial advisors and other client-facing teams are benefitting from technological transformation and further adoption is set to fuel strong revenue gains.

That’s one of the key takeaways from a new report from sales and revenue enablement firm Seismic which found that financial services industry leaders believe AI integration will drive a 52% increase in revenue by 2030.

Those who took part in the research helped reveal how the work of professionals such as advisors, bankers, relationship managers, and wholesalers are being transformed by technology despite more investment being needed.

Firm leaders reported that using AI-powered tools has already produced positive results for client relationships, AUM, and revenue, with productivity boosted across multiple parts of the business. Uses also include greater personalization to meet client demand for solutions that align with their own needs.

The report introduces the concept of Generation Enablement or Gen E, a mindset emphasizing strategic digital transformation, cross-functional collaboration, and proactive use of technology to drive growth.

The use of enablement technologies are already being used in 62% of financial services firms compared to less than half in other industries, the report says, and 93% of financial services leaders stated that AI will transform the industry within five years.

The functions that will see the greatest optimization from AI are expected to be:

  • sales (61% of respondents said this)
  • marketing (61%)
  • strategy and operations (49%)
  • risk and compliance (43%)
  • coaching and training (39%)
  • legal and audit (33%)

Leaders are prioritizing upskilling of their teams to increase competency in the use of AI tools - 90% of respondents have prioritized their workforce's digital development and upskilling - and more than nine in ten said being AI literate will become an essential skill for client-facing professionals.

“Changing client expectations and preferences, coupled with the promise of newer technologies such as generative AI, are reshaping the ways financial services companies operate,” said Kerry Ryan, CPWA, senior director of Financial Services Industry Marketing at Seismic. “Our new study highlights the undeniable impact that the fusion of AI and go-to-market strategy has on boosting the bottom line. Adopting the right solutions empowers client-facing teams to adapt to evolving client demands, ensuring they can foster the deep, lasting relationships our industry is known for.”

ADOPTION RESISTANCE

However, while the case for greater adoption of AI by financial services firms may be compelling, especially with investment in enablement initiatives showing strong ROI, not everyone in organizations is keen.

Seismic’s report, Revenue Enablement in Financial Services: 2024 Global Findings & Insights, highlights that respondents continue to struggle to get the necessary buy-in from their team (58%) and company executives (54%).

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