NEW YORK, June 13, 2019 /PRNewswire/ -- The financial
services industry's top priority for AI applications is data
mining, according to the second annual AI Outlook Survey from
Broadridge Financial Solutions Inc. (NYSE: BR), a global Fintech
leader that is part of the S&P 500® Index. The survey results,
released today, explore the state of AI adoption and readiness
among U.S. financial services companies. Data mining (36%) was
followed by post-trade processing (20%), market analytics (13%) and
trading systems (12%). Broadridge polled operations, technology and
regulatory leaders from across the financial services industry and
released the findings in conjunction with a white paper focused on
AI adoption.
The Age of AI?
Comparing and relating the progress of AI initiatives to
relevant historical eras, a clear majority of respondents (84%) say
their company is in or past "The Enlightenment Age" of AI, during
which they are at or beyond proof of concept. Twenty-nine percent
of companies have moved into the "Industrial Age" with pilots and
one-fifth (20%) are in the modern "Information Age" with AI in full
production.
Though most companies are in some stage of AI adoption, or at
least exploration, a cautious 10% remain in the Stone Age with no
current plan to leverage AI. Broadridge's white paper is
paired with the AI Readiness Assessment, which helps firms
establish the strategy, structure, systems, skills and staff needed
to create a successful AI program.
"While most organizations recognize that AI is a
transformational technology with huge potential impact, their
approach to adoption has been cautious. The survey data and white
paper demonstrate how to harness the power of AI and successfully
increase its adoption by first establishing a clear strategy and
framework," said Michael Tae, head
of strategy for Broadridge. "At Broadridge, we are focused on what
we call 'the ABCDs of innovation'™: AI, blockchain, the Cloud,
digital and beyond. This is how we define our continued commitment
to driving the innovation roadmap; helping our clients understand
and apply next-generation technologies to transform business,
optimize efficiency and generate growth.
AI's Productivity Boost Blocked by Legacy Technology
Respondents also ranked their top motivations or desired
outcomes for investing in AI. Half (53%) cited "increased
efficiency and productivity" as their top motivation and a majority
(84%) included it in their top three. Other top-three motivations
among respondents included enhanced data and security (69%) and the
ability to redeploy human capital (51%).
While it's encouraging that a high number of respondents
understand the advantages of AI's capabilities, roadblocks continue
to impede implementation. Nearly half of respondents (46%) cited
legacy technology as their top challenge. This tracks with the
difficulties associated with modifying or replacing a current
infrastructure and the potential need for vendor or personnel
changes. Cost of investment/perceived ROI was named the second
largest roadblock (31%), while executive buy-in was considered a
challenge by only 7% of respondents.
Avengers Style: Wall Street's Relationship with AI
Partners
When asked which superhero relationship best describes their
company's interaction with AI technology partners, a majority (58%)
chose "The Avengers," alluding to their desire for teamwork.
Conversely, 8% admitted to having an adversarial relationship with
their Fintech partners, likening it to that of Batman and the
Joker. Other respondents compared their technology-related
relationships to that of "frenemies" like Professor X and Magneto
(16%) and internal conflict like The Hulk's (14%). The power of
partnership for planning smooth AI adoption is clear and prevalent
for financial services professionals and technology vendors.
The Four Stages of AI Adoption
The corresponding Broadridge white paper reveals the four stages
of AI adoption — beginner, experimenter, fast follower and
innovator — and how they differ from the stages that have played
out in previous waves of technology transformation. According to
the white paper, AI algorithms are often self-teaching and improve
over time, making them opaque and difficult for competitors to copy
or reverse engineer. Those in the innovator stage truly have an
advantage over fast followers and experimenters.
For more information and to read the full white paper, please
visit: Is Your Firm Ready to Implement AI for Smarter
Operations?
Methodology
The survey of 153 financial services professionals was conducted
at the 46th annual SIFMA Operations Conference &
Exhibition in Boca Raton,
Florida on May 7-8, 2019.
About Broadridge
Broadridge Financial Solutions, Inc. (NYSE: BR), a $4 billion global Fintech leader and a part of
the S&P 500®Index, is a leading provider of investor
communications and technology-driven solutions to banks,
broker-dealers, asset managers and corporate issuers globally.
Broadridge's investor communications, securities
processing and managed services solutions help clients reduce
their capital investments in operations and infrastructure,
allowing them to increase their focus on core business activities.
With over 50 years of experience, Broadridge's infrastructure
underpins proxy voting services for over 50 percent of public
companies and mutual funds globally, and processes on average more
than US $5 trillion in fixed income
and equity trades per day. Broadridge employs over 10,000 full-time
associates in 18 countries.
For more information about Broadridge, please
visit www.broadridge.com
Investors:
W. Edings Thibault
Head of Investor Relations
+1 516-472-5129
edings.thibault@broadridge.com
Media:
Tina Wadhwa
Broadridge Financial Solutions
+1 212-973-6164
tina.wadhwa@broadridge.com
Samantha Foley
Prosek Partners
+1 646-818-9140
sfoley@prosek.com
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SOURCE Broadridge Financial Solutions, Inc.