Wealth managers must embrace the rise of AI or risk being left behind, as affluent clients increasingly want – and expect – their advisers to use tech, the biennial EY Global report has found.
Nearly half of very wealthy clients surveyed were even open to their financial planning being managed by AI, the survey revealed.
The rapid rise in AI along with growing fragmentation, increasingly digitally empowered clients and fears over the looming great wealth transfer were redefining the wealthy management industry, the influential EY Global Wealth Research report highlighted.
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Sixty per cent of clients expected wealth managers to use AI, while more than 70 per cent believed they already were, the report found. In addition, 43 per cent of clients were open to receiving financial planning directly from AI.
‘The future role of AI in wealth management is yet unclear but doing nothing is not an option,’ the report authors warned.
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Jun Li, EY Global and Americas wealth and asset management leader told Spear’s: ‘AI is at the forefront of wealthy clients’ priorities—60 per cent of clients in our research globally expect to see it integrated into services, with Gen X and Millennials leading the charge for its inclusion in their financial planning.
‘Moreover, expectations among VHW and UHNW clients seem higher overall than the mass-affluent cohort, which may surprise wealth managers focusing their client-facing AI investments on lower wealth bands. While attitudes toward AI vary across generations, enthusiasm is growing, albeit alongside concerns: nearly half of clients worry about the use of personal data and question the accuracy of AI systems, highlighting the need to bridge the generational divide.’
The challenge for wealth managers, he added, was how to introduce and integrate AI while preserving ‘trust, accuracy and ethical concerns’.
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A diverse picture
The EY Global Wealth Research report found that while customer satisfaction remained high among clients, wealth managers were facing an increasingly complex picture against a backdrop of economic volatility, inflation, political instability and macroeconomic stressors.
The report found that today’s wealthy clients are more informed, digitally empowered, and demanding than ever. This had led to a growing willingness to switch providers, underlying the risk of complacency in an evolving industry.
Wealth management’s familiar set of assumptions about client loyalty are being dismantled as clients become increasingly willing to divide their assets, the survey found. Clients, especially those from young or wealthier cohorts are demanding more from their advisers and taking more of an active role.
Clients are looking for a more diverse suite of offerings. Fifty-one per cent now have some exposure to alternative investments, and 61 per cent want to actively discuss alternatives with their advisers. This figure rises to 75 per cent among the wealthiest. In addition to the 51 per cent of clients with some exposure to alternatives, another 27 per cent would like to learn more about these assets. However, financial advisers have only discussed alternatives with about half of this group (15 per cent of clients).
There is a growing interest in digital assets, especially among younger, wealthier clients. The report warned that many traditional firms remained cautious, a disconnect that could present a growing risk, leaving the door open for specialist or digital-first competitors.
[The Spear’s Wealth Management Indices]
Multiple providers
While there were strong satisfaction scores, one in five clients felt their concerns were not being adequately addressed, according to the survey of 3,600 affluent clients across the world, that included a greater representation from Southeast Asia, the Middle East, and India.
Nearly 30 per cent of global clients said they planned to change their primary wealth manager, with the number rising among Millennials and those in high-growth regions.
Even more striking, 45 per cent planned to shift a quarter to half of their assets, and 32 per cent plan to use more providers,
Clients are defining value differently, the report highlighted. A full-service bank remained the business model of choice for 21 per cent of clients but people increasingly wanted to see services deliver on performance, the availability of products and services, and branding.
Multihoming, the use of multiple providers, is a rising norm, with clients using an average of 2.3 wealth managers and 32 per cent planning to increase that number. The proportion planning to work with an increasing number of providers was nearly 50 per cent in high growth regions such as the Middle East.
Loyalty is increasingly conditional. While four in five clients are likely to retain their adviser after receiving inherited wealth, nearly half say this is only ‘somewhat likely’.
Unprepared for the great wealth transfer
Half of all clients feel unprepared for wealth transfers: inheritance planning is becoming an urgent issue, with trillions of dollars poised to change hands over the coming decade.
When surveyed about reasons for feeling underprepared, clients 55 per cent (64 per cent of UHNW) cited the impact of market conditions and volatility; 26 per cent uncertainty about the effect of alternative products on financial plans, and uncertainty about how accounts at other providers impact financial plans was cited by 23 per cent (and 45 per cent of UHNWs).
Jun Li said: ‘The 2025 EY Global Wealth Research clearly shows that despite economic headwinds in recent years, wealthy clients are largely satisfied with their wealth management providers. However, it is also evident from the research that clients perceive complexity around their wealth to be increasing, and many feel unprepared for market volatility, geopolitical uncertainty, and also critical areas like wealth transfer.
‘Wealthy clients across demographics and regions are now actively seeking more holistic guidance and advisor interactions. In the current climate, it is not enough to simply satisfy clients anymore. Wealth managers that can expand their scope to bring clients a combination of personalised products, advice and ancillary services will be the ones that can differentiate in a crowded market.’
