Asset managers accelerate AI adoption despite persistent legacy hurdles

The financial industry is rapidly increasing investments in generative AI, with asset managers integrating these technologies to boost operational efficiency and customer experience, while grappling with legacy system challenges.

Generative artificial intelligence (GenAI) has swiftly become a top priority for asset managers, with a substantial increase in investment and adoption reported across the financial sector. According to a recent study by Broadridge Financial Solutions Inc., 72% of financial firms surveyed indicated making “moderate to large” investments in GenAI, rising significantly from 40% in the previous year. This trend reflects a broader digital transformation within the industry, as asset managers and other financial institutions increasingly recognise the potential of AI technologies to enhance operational efficiencies and client engagement.

The Broadridge survey, which polled 509 global financial technology and operations leaders, including 175 asset managers, found that around 63% of asset managers currently use GenAI in their operations. Among all participating firms, over two-thirds reported utilising GenAI tools, with many expecting a return on investment (ROI) within a relatively short timeframe—35% anticipated ROI within six months, and more than two-thirds within two years. This surge in AI adoption aligns with findings from other industry reports that show a growing commitment to artificial intelligence, with 80% of financial services firms making moderate-to-large investments in AI in 2025, up from 74% the previous year.

Asset managers are utilising GenAI across several key applications. Nearly half (47%) rely on AI chatbots to improve customer service, while 43% deploy AI to enhance marketing and external communications. A quarter of firms use GenAI models to elevate client experience, which remains a central challenge amid the sector’s legacy technological constraints. Cost reduction, operational efficiency, customer experience improvement, and enhancing employee experience were cited as the primary motivations for investing in GenAI.

Despite the rapid adoption, challenges persist, particularly in client personalisation—a critical aspect of modern asset management. More than half of the surveyed leaders identified personalising content as their biggest customer experience hurdle. Fragmented legacy systems and siloed data impede efforts to deliver cohesive and personalised client interactions. As Matt Swain, Broadridge’s head of insights and experience, explained, many firms still operate multiple, disconnected platforms for different product lines, such as deposit accounts, credit cards, and wealth management services, hindering digital integration and customer engagement.

Legacy technology limitations were acknowledged by 50% of asset managers as a barrier to providing stronger customer experiences, and 62% flagged siloed technology and data as an issue affecting enterprise-wide customer interaction. This fragmentation also affects basic communication preferences; for instance, over half of respondents reported their firms continued to send print communications to clients who had chosen to go paperless.

Broadridge’s findings are consistent with broader industry trends. For example, a Boston Consulting Group report from May 2024 noted that 72% of asset managers expect generative AI to have a significant or transformative impact on their organisations within the next three to five years, with 66% making GenAI a strategic priority. Similarly, data from other sources highlight that AI-driven investment decisions are growing rapidly, projected to surpass $1 trillion in assets under management, and that most asset managers plan to increase AI investments significantly in the coming years.

The data underscore a financial industry in the midst of a pivotal shift, where AI technologies—particularly GenAI—are becoming integral to competitive strategy. However, realising the full benefits depends on overcoming technological silos, scaling digital capabilities, and demonstrating clear ROI, especially to firms still weighing the maturity and budget considerations of AI adoption. The sector’s focus on AI-enhanced customer experience, operational efficiency, and productivity signals a transformative future, even as the nuances and challenges of integrating these technologies remain at the forefront of industry debates.

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Source: Noah Wire Services

Noah Fact Check Pro

The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.

Freshness check

Score:
10

Notes:
The narrative is based on a recent press release from Broadridge Financial Solutions Inc., dated April 3, 2025, indicating high freshness. ([broadridge.com](https://www.broadridge.com/press-release/2025/ai-and-digital-asset-investments-rise-per-broadridge-study?utm_source=openai))

Quotes check

Score:
10

Notes:
The direct quotes from Matt Swain, Broadridge’s head of insights and experience, are unique to this report, with no earlier matches found online, suggesting originality.

Source reliability

Score:
10

Notes:
The narrative originates from Broadridge Financial Solutions Inc., a reputable global technology leader in financial services, enhancing its credibility.

Plausability check

Score:
10

Notes:
The claims align with Broadridge’s recent initiatives, such as the launch of GenAI-powered OpsGPT in January 2024, demonstrating consistency and plausibility. ([broadridge-ir.com](https://www.broadridge-ir.com/news/news-details/2024/Broadridge-Launches-GenAI-Powered-OpsGPT-to-Transform-and-Optimize-Trading-in-a-T1-Environment/default.aspx?utm_source=openai))

Overall assessment

Verdict (FAIL, OPEN, PASS): PASS

Confidence (LOW, MEDIUM, HIGH): HIGH

Summary:
The narrative is fresh, original, and originates from a reliable source. The claims are plausible and consistent with Broadridge’s recent activities, indicating a high level of credibility.