Artificial intelligence can help businesses identify new clients and streamline back office operations, but so far, only the largest companies have found the data-heavy tech practical. Early adopters of artificial intelligence are expecting substantial increases in profitability in 2018, according to the Nationwide's Advisor Authority survey of 1,700 advisors. But, those that used big data were also more likely to have sizeable assets under management, over $250 million in AUM and incomes of more than $500,000. That's because, for more modest firms, fewer clients mean less reliable data. "Wealth managers are still struggling to get a consistent line of sight on customer data and that includes things like demographics and transaction data," says William Trout, senior analyst at the consulting firm Celent.

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.