Financial Firms Increase Investments in Generative AI
A recent report from Broadridge Financial Solutions reveals that financial firms are significantly ramping up their investments in artificial intelligence (AI), particularly in generative AI technologies, while also maintaining a strong emphasis on cybersecurity.
The report, based on a survey of over 500 professionals in wealth management, capital markets, and asset management, indicates that AI has become the third most frequently utilized technology in these firms.
According to the findings, 86% of respondents plan to bolster their AI investments over the next two years, with 72% making ‘moderate to large investments’ in generative AI in 2025—an impressive increase from just 40% in the previous year. The primary motivations for these investments include reducing costs and improving efficiency (29%), enhancing customer experience (28%), and improving employee experiences (19%).
Many firms have expressed optimism regarding the returns from their AI investments. One-third of respondents anticipate a return on their generative AI investments within one to two years. However, despite the enthusiasm, 74% believe that generative AI should be subject to stricter regulations.
Cybersecurity continues to be a dominant concern, as 87% of respondents indicated that it remains their top investment priority. The survey highlights that although firms are eager to adopt AI technologies, two-thirds still consider security measures paramount to safeguard sensitive data against increasingly sophisticated cyber threats.
Conclusion
The landscape of technology within financial firms is rapidly evolving, with generative AI and cybersecurity at the forefront of their strategic priorities.
