Wirehouses best positioned to benefit from artificial intelligence

According to a new report from Autonomous Research, AI has potential to reduce front, middle and back office costs by $199 billion by 2030. AI could save firms 60% in front-office costs by targeting financial advisers and the infrastructures that support them, cutting an estimated $125 billion across the industry. Another $32 billion could be saved by handing middle-office costs like compliance and trading to computers, while another $42 billion could be cut from portfolio manager compensation and associated research costs. Most savings will be realized by the largest financial institutions. Independent firms could find themselves threatened, said Lex Sokolin, Autonomous' global director of fintech strategy.