Wealth management firms understand that many rich clients want the comfort of talking to a named individual, so AI has not yet resulted in job losses. Instead, AI is being used to reduce the burden of bureaucracy, improve the efficiency of customer relations, beef up fraud detection, and help humans with ever-expanding regulatory compliance.
The allure of AI may send fund managers in different directions. BlackRock, the largest fund management group in the world, has set up BlackRock AI Labs although it has been tight-lipped about what is going on there. Other fund managers are more open about what they are doing. At Sanlam Investment Management, Ford uses AI to help identify companies across all sectors that he may wish to invest in. Sanlam has a database of listed companies built using data compiled by stock exchanges and regulators such as the Financial Conduct Authority in the UK and the US Securities and Exchange Commission. Since companies face sanctions for misrepresentation, they are less likely to claim that they have a large AI-related business if they do not.