Wealth management is on the edge of a seismic shift, with artificial intelligence (AI) set to revolutionize how financial advice is delivered and who delivers it. This change is so profound it will make traditional advisory models obsolete. Picture a future where AI knows your financial needs better than any human adviser and crafts tailor-made strategies just for you. That future isn’t far off – it’s nearly here. As past disruptions in trading, retail and transaction banking show, change happens faster than we expect.

First disruption: trading floors to algorithms

The first major disruption in finance hit trading desks in the late 1970s, gaining speed in the 80s and  90s. What was once chaotic – with brokers shouting orders and shuffling papers – transformed with electronic systems like Nasdaq. Professionals who once managed the computer systems and high-speed internet connections that powered trading became coders, optimizing milliseconds to capture market opportunities. The human touch was minimized, and technology became the heartbeat of trading. That’s when I realized technology’s takeover of finance had begun.

Retail revolution: physical banks to digital screens

In the late 1990s, retail banking underwent its transformation. ING Direct leveraged digital tools to offer better rates and easier access, moving savings online and proving that banking didn’t need physical branches to thrive. By the 2010s, customers could manage their finances anytime, anywhere through touchscreens and mobile apps. This shift in retail banking solidified technology’s role in delivering superior financial services.

Transaction banking and payments: paper to digital

Transaction banking followed suit in the late 1990s as corporations embraced faster, cheaper and more transparent digital solutions. At ING, we were at the forefront, pioneering the digitization of transaction banking and setting the stage for electronic cash management. This improved efficiency and set the stage for future innovations like AI.

Wealth management: execution to intelligence

Today, we are on the brink of another massive disruption – this time in wealth management. It started with platforms like Robinhood, which offered low-cost trades but left investors to navigate decisions on their own.

As technology advanced, aggregation and dashboarding tools gave clients a full view of their portfolios. This was the first step toward empowering clients with knowledge, but still it was just static data. Then came algorithm-driven platforms like Betterment and Wealthfront, offering standardized portfolios that were better but still treated clients as categories rather than unique individuals with their own circumstances and goals. It was just a matter of time before technology would take a deeper hold on finance.

AI and the ‘segment of one’

During my time as CEO of UBS, we integrated AI-driven analytics into our advisory services, tailoring strategies to real-time data and client behaviour. This was the first step toward what I call the “segment of one”, where each client's portfolio is uniquely optimized.

Traditionally, advisors spent countless hours understanding a client's risk appetite, legacy goals and family dynamics. Yet, even the best advisers are limited by the insights they can gather and the range of products they know.

AI changes everything. It processes vast amounts of data – beyond what any human adviser can. It analyzes a client’s actions, preferences, and subconscious biases to create a truly personalized investment strategy.

Unlike traditional advisers, who are limited by time and scope, AI continuously learns and adapts,  ensuring that your financial plan evolves with life changes and market conditions. What once required a top-tier adviser can now be achieved through AI-powered platforms at a lower cost and with more precision, making bespoke financial planning accessible to a broader audience. As these AI-driven tools become more widely available, more people will be empowered to build wealth with precision once reserved for the elite.

It won’t be long before demand surges, customer expectations align with this new standard, and these AI-powered tools become a top priority for clients seeking to maximize their financial potential. Faster, smarter and more accessible ways to build wealth – it’s an easy choice.

Defining moment for wealth management

While the past 50 years have seen several disruptions in finance, AI isn’t just the next leap – it’s the defining moment in the evolution of wealth management. Advisers and firms who have embraced this change will be positioned at the forefront of a rapidly evolving industry, gaining a competitive edge as client expectations shift towards hyper-personalization. Those who resist will quickly find themselves left behind, unable to keep pace with the new standard of intelligence-driven, adaptive financial strategies.

The time to act is now – whether you’re a wealth manager, a financial firm or an investor seeking to grow your portfolio. AI is no longer a tool for the future; it’s the cornerstone of success in wealth management today.

Ralph Hamers is an adviser to established and new players in the global financial sector. Hamers was previously the CEO of UBS and ING. He is a senior adviser to, and investor in, the Singapore- and Silicon Valley-headquartered digital wealth platform Arta Finance.