AI Financial Services Reckoning: Only Global Powerhouses To Thrive
The AI advances now forcing a violent repricing across wealth management are set to accelerate consolidation across financial services, concentrating market share in“heavyweight global advisory firms equipped to handle complexity that algorithms alone cannot.”
That is the bold prediction from Nigel Green, chief executive of deVere Group, as stocks across the sector retreat following the launch of a new artificial intelligence-powered tax planning tool that claims to generate fully personalized strategies within minutes.
Markets have reacted sharply to the idea that AI can analyze tax returns and income data almost instantly, raising concerns that traditional advisory fee models face structural compression.
Automation threatens to make elements of domestic tax optimization faster, cheaper and more accessible.
Nigel Green agrees that part of the industry will now change permanently.
However, he argues that the selloff reflects an assumption that wealth management is primarily about calculating tax outcomes within one jurisdiction.
In reality, global wealth has become more complex precisely at a time when geopolitics is fragmenting the international system.
He also adds that AI's limitations become more visible as geopolitical risk intensifies.
He believes the current repricing is part of a broader segmentation of the sector.
Historically, operating internationally increased operational burden and compliance cost.
He expects consolidation to accelerate as investors and clients differentiate between commoditised advisory functions and globally integrated advisory platforms.
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