Featured AI Article | Business Reporter's Future of Financial Services, Banking and FinTech Campaign

Hank Boughner headshotSpecial featured article on the Business Reporter web site, January 5, 2024.

As fund managers, institutional investors, and service providers scale and expand across the globe, serious technological and regulatory challenges are inevitable. Firms must address these scaling issues, while at the same time determining the best execution strategy in a market that continues to grow as inflation eases and equities close in on double-digit gains.

In 2023, with surging popularity of new generative AI applications such as ChatGPT, businesses both grappled with, and also rapidly embraced, the operationalization of AI into everyday business. According to a report by US News, the global market for artificial intelligence in asset management was worth approximately $2.6 billion in 2022, but is expected to expand at a compound annual growth rate of 24.5% from 2023 to 2030.

Despite the incredible growth projections, there is also healthy skepticism of some of AI’s most sweeping claims. According to a KPMG poll, 75% of financial services business leaders currently believe AI is more hype than reality. However, that same report highlights that firms approaching AI from a customer-focused growth agenda are already beginning to see returns. According to Harvard Business Review, “44% of all working hours across industries have the potential to be impacted by generative AI.” The largest opportunity lies in banking, where 72% of working hours can potentially be transformed by generative AI. In insurance, the figure is 68%. Capital markets are not far behind at 67%.

Read the rest of the article and watch the vodcast on the Business Reporter web site here.