February is a month when this news service will be exploring use cases for AI in wealth management and private banking. (We will, however, look at it all year round as well.) To kick things off is a guest commentary about the global AI and wealth management picture.

We have seen the initial hype and excitement and, in some cases, the fears. The ability of AI to set the financial weather is already well established. Look at how reports that China’s DeepSeek app allegedly cost far less to develop than the Western versions sent shares in chipmaker Nvidia reeling, wiping hundreds of billions off its share price. This week, US Vice President J D Vance gave a major speech in Paris about the dangers of over-regulating AI. Politicians, regulators and corporate bosses are wrestling with what this technology means for jobs, growth, privacy, convenience, and, sadly, warfare. 

The editorial team is delighted to share the following insights about AI and wealth management from Rami Cassis (pictured), CEO of Fintilect, a UK-based software company. Please note that the editors don’t necessarily endorse the views of outside contributors. These articles are designed to start conversations, so please join in. Email tom.burroughes@wealthbriefing.com and amanda.cheesley@clearviewpublishing.com

As those working within the realms of financial technology have known for a long time, AI is a key enabler of Industry 4.0, or the fourth industrial revolution.

However, crucially, AI is increasingly being adopted by the wealth management sector as a must-have for its daily operations as it increasingly focuses on automation, data exchange, and smart technologies. Indeed, AI drives many of the processes that wealth managers are increasingly reliant upon to analyse vast swathes of data, improve quality assurance, optimise operations and adhere to regulatory requirements. 

One of the ways that AI is reshaping the wealth management sector is the effect it is having on many “traditional” wealth management roles, jobs which have, until now, always been fulfilled by human team members. Many key roles are being taken over by AI altogether in a trend which is changing the entire staffing fabric of many parts of the sector. 

However, should wealth managers be concerned? Are these changes likely to result in job losses or redundancies – news that is seldom welcomed by anyone? Interestingly, far from it. In fact, AI could well reinvigorate and re-energise some of the sector's key job roles. 

Shifting roles and responsibilities
AI is reshaping the wealth management sector by automating many traditional jobs, particularly, those involving data analysis, compliance, and portfolio management.

Let us examine three of these key roles: 
1. Portfolio managers
Robo-advisors and automatic portfolio management is already commonplace. 

Indeed, several industry names are already established as go-to sources by wealth managers, including Wealthfront, Betterment, and Vanguard Digital Advisor. These create, rebalance, and optimise investment portfolios, while AI-driven risk assessment models analyse client profiles and market conditions to adjust asset allocation.

However, does this mean that wealth managers and portfolio managers are now obsolete? Are they already consigned to the history books? Of course not – and is it highly unlikely they ever will be. 

Rather, human advisors can use the vast time savings that AI tools enable to add extra value to their clients and treat them as unique individuals. Rather than a one-size-fits-all approach, advisors can really dig into their specific needs and ensure that these AI-driven tools are working harder than ever on their behalf. 

2. Compliance managers
Wealth management and compliance are so intrinsically linked – and quite rightly so – that it is often impossible to separate the two concepts. 

However, instead of a full-time compliance team, constantly monitoring client portfolios and stress-testing the effectiveness of advisor recommendations, AI is increasingly stepping up to the breach. 

AI-driven tools can now automatically analyse transactions for potential violations, while machine learning models can easily detect fraud, money laundering, and insider trading in real-time. This is much more effective than humans who are often limited by only being able to look at information after the offence has taken place – which is often too late. 

Furthermore, AI-driven tools streamline essential tasks such as KYC (Know Your Customer) and AML (Anti-Money Laundering) processes.

However, does that mean the compliance manager’s desk is now empty due to a role that is now relegated to the past? Not at all – indeed, the compliance department, if anything, is now even more important. 

While compliance professionals might need to concentrate on fewer manual processes, their skills and insights are still in demand to focus on AI governance, regulatory oversight, and cybersecurity matters. While AI might be shouldering the burden of routine matters, it cannot succeed without the input of upskilled compliance teams. In order to ensure watertight compliance processes, the two must increasingly operate together. 

3. Paraplanners
Paraplanners are tasked with performing the essential administrative and clerical duties that enable financial advisors to spend more time concentrating on their clients. AI tools that analyse market data, breaking news, and financial reports are becoming widespread, largely because they can often interpret data faster and more accurately than humans, while machine learning models can efficiently generate investment insights. 

Such trends, coupled with digital diary management, AI-powered chatbots and virtual assistants which can handle routine client inquiries, and automatic client onboarding processes mean that paraplanners’ traditional job descriptions are becoming somewhat redundant. 

However, wealth managers have a golden opportunity here to re-evaluate the roles of the paraplanner. They can be empowered to carry out much more fulfilling and proactive client relationship management and advisor support duties by interpreting the AI insights and managing the AI tools. 

The common denominator
We are witnessing a very clear pattern. While AI is clearly eliminating repetitive tasks, it is enhancing human advisors' abilities. 

While roles in analysis, compliance, and customer service are shrinking, demand is growing for professionals who can interpret AI insights, manage AI tools, and provide human-centric financial guidance.

Therefore, while AI is already replacing roles – and will continue to do so – it creates headroom for human roles to expand, especially when investors have specific needs that may not meet the computerised logical conclusion, such as a desire to invest only in ethical funds or only invest in regeneration-related securities.

Furthermore, the adoption of AI can lead to a re-deployment of some staff members which, in turn, has the potential to free up budgets to provide more client relationship roles – a move that will make clients feel even more valued as individuals. 

Therefore, if anything, the wealth management sector’s human workforce remains in ever greater demand than ever before as a direct result of AI. 

Conclusion
AI is, without any shadow of doubt, rewriting the face of the wealth management sector – with changes in staffing needs being one of the most noticeable. 

However, rather than being a reason for concern, wealth managers should see this as an exciting time; one that is ripe to re-evaluate the roles given to staff members and empowering them to carry out much more fulfilling roles. 

The key takeaway is that AI is not eliminating jobs – it is transforming them. It is shifting the focus away from routine tasks to high-value advisory, technology, and compliance roles. 

Firms that adapt by hiring tech-savvy talent and upskilling existing employees are much more likely to remain competitive. They will be the ones who will quite rightly see AI as an overall enabler to their industry, taking over the routine tasks, and giving employees a new lease of life by jumping on the many opportunities that AI is presenting.