AI moves from ‘niche to necessity’ for UHNWIs

Artificial intelligence (AI) has moved rapidly from a niche tool to a necessity that is woven into everyday activities for ultra high net worth individuals (UHNWI), according to a report from BNY Wealth.

Its Intelligent Investor report stated that AI had become part of UHNWIs’ daily routine, helping them make more informed personal, business, and investment decisions.

BNY Wealth’s survey of 251 UHNWIs with at least $10m in investable assets found that 96 per cent used AI at least once a week, while 67 per cent used it at least 10 times a week.

More than half (54 per cent) were using AI for financial decision making, including 10 per cent who used it as their primary tool.

Of those using AI for financial decision making, 76 per cent used it for investment research, 63 per cent for portfolio analytics, 52 per cent for reporting or monitoring, and 37 per cent were using it for tax or estate planning.

Despite the wide adoption of AI, the report noted that UHNWIs still believed human expertise, context, and accountability remained an essential part of the investment decision-making process.

Furthermore, while investors saw the potential of AI, they highlighted the importance of transparency, security, and governance.

“AI will be one of the most significant economic accelerants of the next decade,” said BNY Wealth chief investment officer, Alicia Levine.

“Over the next five years, its impact will expand well beyond core technology, driving productivity, reshaping industries and catalysing the creation of new markets.

“This is not just a tech cycle; it is a more pervasive value creation cycle that will increasingly provide investors with growth opportunities across private and public markets.”

Almost nine in 10 (89 per cent) UHNWIs were investing in companies with significant exposure to AI, either actively or indirectly, while 67 per cent planned to increase their allocations to AI next year.

Although venture capital is often seen as providing the most attractive AI opportunities, 77 per cent of UHNWIs saw public equities as a preferable way to access the sector.

This was followed by thematic ETFs (49 per cent), venture capital and private equity funds (43 per cent), real estate infrastructure linked to AI (39 per cent), and direct start-up investment (28 per cent).

Valuation risk was seen as the top concern with AI investment (52 per cent), followed by overhyped technology (51 per cent), a highly competitive market (40 per cent), and cyber security (40 per cent).

“Explainable AI is moving from a technical feature to a foundational requirement,” said BNY Wealth senior equity analyst, Kevin Shea.

“As AI systems influence more real-world outcomes, transparency and interpretability are key to building trust and ensuring those systems perform reliably.

“Ultimately, explainability leads to better decisions, and it will be critical for broad, sustained adoption.”

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