EY America’s Ugur Hamaloglu says the investment required means the technology has to drive client acquisition, engagement, and personalization.
For much of the past decade, AI in wealth management was discussed primarily as a lever for efficiency and cost reduction. That framing is now changing rapidly.
Speaking with InvestmentNews, Ugur Hamaloglu, EY Americas Wealth & Asset Management Consulting leader, highlighted how the economics and ambitions of AI have fundamentally shifted as the industry enters 2026.
“For a long time, AI adoption focused on efficiency because that’s where value was easiest to measure,” Hamaloglu said. “But the capital investment required by AI cannot be supported by cost reduction alone; it has to be part of the growth engine. Firms now have the data, tools, and confidence to apply AI to the front office, especially client acquisition, engagement, and personalization.”
He stressed that AI is moving from being an efficiency tool to something that directly supports growth and this evolution is most visible in how firms are approaching client acquisition. Recent findings show that 78% of wealth managers now cite enhanced client acquisition as a top generative AI use case. The reason lies in how different AI-powered acquisition looks compared with traditional digital strategies.
“Traditional acquisition relies on broad segmentation and static campaigns,” Hamaloglu said. “AI-powered acquisition is far more dynamic, and it uses behavioral signals and synthetic data to predict client needs, personalize outreach and guide advisor follow-up in near real time. That’s why we’re seeing nearly eight in ten wealth managers prioritize AI specifically for improving the client acquisition experience.”
As personalization becomes more sophisticated, questions around ethics, privacy, and regulation inevitably arise. Hamaloglu emphasized that responsible use is becoming a defining characteristic of leading firms rather than an afterthought.
“Responsible firms are building governance into AI use cases from the start,” he said. “Synthetic data allows them to assess scenarios and identify patterns without exposing sensitive client information, while human oversight, clear controls and compliance review remain central. The goal is personalization with guardrails, not automation without accountability.”
Matching advisors and clients
One of the most promising front-office applications of AI is advisor-client matching, an area where technology is moving well beyond basic demographic filters. Hamaloglu described how AI evaluates compatibility on more human dimensions.
“Compatibility is about more than age or net worth, it’s about communication style, decision-making preferences and how clients want to engage,” he said. “AI helps surface those patterns early, so clients are paired with advisors they’re more likely to trust and stay with for a long time. That stronger fit improves engagement, especially during volatile markets when trust matters most.”
Although many firms are still early in deploying these tools, Hamaloglu noted that they are already seeing measurable outcomes.
“They’re already tracking improvements in conversion rates, client satisfaction, and retention,” he said, adding that beyond those immediate metrics, “we’re also seeing stronger engagement and faster relationship ramp-up, which are leading indicators for AUM growth. The most advanced firms are tying matching directly to commercial metrics, not treating it as a soft benefit.”
AI’s influence is also reshaping how firms think about service, an area long viewed as separate from growth. That separation is disappearing, Hamaloglu argued, as servicing becomes a strategic lever for both acquisition and retention.
“Leading firms no longer separate servicing from growth,” he said. “AI-enabled onboarding, faster responses, and proactive outreach are now part of how firms win and keep clients.” The payoff compounds over time: “When service improves, retention improves and satisfied clients become a powerful source of referrals.”
Despite concerns that automation could weaken the advisor-client relationship, Hamaloglu sees the opposite happening. In his view, AI is redefining the advisor’s role rather than diminishing it.
“AI is taking work off advisors’ plates, not value out of the relationship,” he said. “Advisors spend less time on manual preparation and more time on judgment, context, and behavioral coaching, which is what clients actually value. The human role becomes more important, not less.”
Uneven pace
Not all firms, however, are progressing at the same pace. Hamaloglu sees a sharp distinction between experimentation and competitive advantage, pointing to integration as the key differentiator.
“The difference is integration,” he said. “Firms that see real advantage focus on business outcomes rather than siloed use cases, gaining true competitive advantage. This approach requires embedding AI into end-to-end workflows such as acquisition, onboarding, servicing, and advisor enablement to avoid bottlenecks.”
Organizational and cultural barriers remain a significant challenge, particularly as firms try to scale AI for growth. Hamaloglu identified several recurring obstacles.
“The biggest barriers are governance readiness, data maturity, and change fatigue,” he said. “Leaders can overcome these by being clear about where AI drives growth, investing in controls early, and redesigning processes end to end so value compounds instead of stalling.”
He also warned against overlooking the human dimension of transformation.
“Leadership also needs to understand and communicate the value of AI not only to the organization but to individual employees,” he said. “A myopic focus on bottom-line or top-line impact without considering employee value will create further barriers.” Ultimately, “clarity and discipline matter as much as technology.”
Looking ahead to 2026, Hamaloglu expects a clear divide between baseline capabilities and true differentiators.
“Table stakes will be AI-enabled servicing, advisor productivity tools, and automated client interactions,” he said. “Differentiation will come from AI-powered acquisition, deeper client understanding without relying on surveys, and smarter personalization that improves conversion and retention.”
For those firms, success will hinge not just on innovation but on rigor. “The winners will be the firms that pair those capabilities with strong governance and execution.”
