Investment platform sector ‘moving quickly’ to embed AI into operations

The UK investment platform industry is making artificial intelligence (AI) a strategic priority and moving quickly to embed the technology in its operations, according to a report from The Platforms Association.

The benchmarking study, conducted in partnership with Boston Consulting Group, aimed to analyse the uptake of AI across the platform sector.

It found that firms had an average of 13 generative and four predictive AI use cases being worked on.

Nearly three quarters of platforms had already deployed AI in software development and day-to-day operations and 55 per cent were using it to support customer service teams.

Two thirds of platforms expected AI to have a material impact on client reporting and analytics over the next 12 months, which the report said would affect how millions of investors receive information about their money.

The report noted that firms were already dedicating "substantial" funding into AI, with the average firm spending 8 per cent of its technology investment on it, compared to the global average of 5 per cent across industries, while leading firms were investing up to 17 per cent.

Half of firms were found to be overhauling their underlying systems to handle AI at scale, although just 8 per cent had fully completed those upgrades.

Seven in 10 were actively training staff on AI, and more than half had set up dedicated oversight teams to make sure deployment remained responsible.

Advisers and clients were likely to see a more personalised approach and faster reporting going forward, as 80 per cent of platforms said it was likely the sector would evolve towards AI-enhanced services that anticipate client needs, moving from reactive to proactive engagement over the next five years.

"Every single platform we surveyed sees AI as central to their future, that’s a remarkable shift in just a few years,” said The Platforms Association CEO, Keith Phillips.

“What’s encouraging is that they’re not just rushing to deploy it. They’re training their people, building proper oversight, and making sure their clients stay protected.

“This industry manages the savings and investments of millions of people, the focus across the industry is ensuring that this new technology benefits clients, without opening them up to new risks.”

Boston Consulting Group managing director & partner, Dean Frankle, added: "AI presents a significant opportunity for UK investment platforms, but technology alone will not deliver it.

“Leaders must also make deliberate choices about operating model redesign, risk oversight and people and skills transformation."

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