North American wealth managers believe artificial intelligence could be a game-changer in the industry in the near future, but many are loath to fully integrate it into their business, according to a report from Accenture.

In its report, "From Experimental to Exponential – AI: Built to Scale in Wealth Management," Accenture found that while 84% of wealth managers believe AI will transform their industry in the next five years, just 28% are currently scaling it across their businesses.

The report, which surveyed 100 technology and business C-level executives at wealth management firms in the U.S. and Canada, also found that 72% of respondents are focused on either experimenting with the technology through siloed proof of concepts or deploying it across targeted business groups. In addition, 85% of surveyed executives believe AI is more hype than reality.

But most wealth managers (79%) are willing to embrace AI, the report found. It said in the wake of Covid-19, the managers are eager to adopt AI tools that deliver improved efficiencies and enhancements in the areas of digitized experiences, as well as ongoing fee pressure and increased competition from investment banks.

Accenture's report suggests that respondents may be underestimating the long-term value of applying AI to transform the wealth management customer experience. Nearly two-thirds (65%) of respondents believe AI can create the most-long term value in the middle office (including investment management) or operations, whereas only 35% believe the most value can be created in improving the client experience and engagement.

Scott Reddel, who leads Accenture’s wealth management practice in North America, noted that although wealth managers are eager to embrace AI, the finding suggests they largely have not been able to move beyond experimentation toward widespread organizational application at scale.

“They also appear to underestimate the long-term value of AI, coupled with data and analytics, to reinvent the client experience and empower advisors to have more personalized client conversations and sell the right products at the right moments in their clients’ lives,” he said.

For those wealth managers who are engaging with AI, 62% said they use the technology to attract new clients and 61% employ it to increase client service. And 84% said they believe the client experience can be transformed in the next year through AI tools that can determine changes in client sentiment and augment the client relationship management process.

Accenture estimates that on a longer-term basis around 30% of an advisor’s daily activities could be automated through AI. In that vein, 49% of respondents indicated they plan to deploy AI to automate routine, accounting and other support tasks for advisors.

Michael Spellacy, a senior managing director at Accenture and global capital markets industry lead, posits that wealth managers must embrace AI and data and analytics at scale to transform the digital wealth experience and the very nature of advice.

“The next generation of wealth only engages on a technological dimension," he said. "AI can enable financial advisors to bring better insights to clients and engage their full wealth and capabilities rather than the fragments they serve today.