Agentic AI could unlock $35t in wealth AUM capacity: Deloitte

About a quarter or half of advisers’ time could be freed from lower-value work.

Agentic AI can free up wealth advisors’ time for more client relationship building and raise the industry’s asset under management (AUM) capacity by up to $35t.

Advisor productivity uplift could reach 30% to 100% by 2032 using agentic AI, according to estimates by the Deloitte Center for Financial Services.

Industry capacity expansion is estimated at $10t to $35t in additional client assets. At typical advisory fees of 1% of AUM, this uplift translates to between $100b to $450b in potential annual revenue, Deloitte said.

Roughly 25% and 50% of adviser time could be freed from lower-value operational work, it noted.

Advisors today spend nearly 70% of their time on behind-the-scenes work, according to an analysis by Deloitte, based on data from Cerulli Associates.

Amongst notable use cases include Morgan Stanley’s AI Debrief, which automatically summarizes meetings, generates follow-ups, and logs notes into the customer relationship management system.

This reportedly reduces manual documentation and frees advisers’ time for more direct client conversations, said Deloitte, starting Morgan Stanley’s June 2024 announcement.