Oct 21, 2020

Could AI become the manager?

AI
Womble Bond Dickinson
Technology
Wealth Management
Janet Brice
3 min
Wealth management and AI
How AI will shape the future of wealth management with a report from Womble Bond Dickinson...

Artificial Intelligence (AI) looks set to reshape the future of wealth management and may even become the manager, claims a report by the Womble Bond Dickinson.

As AI continues to be adopted and innovated at a rapid pace, the technology stands to provide the wealth management industry with increasingly better decision-making capabilities, more customer centric services and a much broader customer base.

AI technology looks set to improve performance for a company by offering computer programs that follow a human-driven algorithm which can learn from past mistakes.

The report reveals that AI exists to perform all the asset management tasks and can become quantitative analysis firms which assist their clients understand market trends. 

In the future the adoption of AI technology will allow all wealth managers to have access to effective tools that have previously only been available to blue chip companies. 

“AI can be programmed to make lightning-fast trades as the market changes. It may catch market shifts earlier and identify turning points faster than your current analysts,” commented Womble Bond Dickinson.

“At worst, this technology provides inexpensive and trustworthy predictions and advice that a wealth manager can consider as part of her many relevant inputs when advising clients. At most, the AI becomes the manager.”

According to the report asset managers are already implementing AI into their businesses but the report identifies other ways it can be used:

AI can assist in wealth management through data analytics, processing information and automatically interpreting trends used past performance as a guide to predict the future.

“The technology is fast, analysing books in seconds. AI never sleeps. AI makes no emotional decisions. AI plays no favourites. Wealth managers can naturally save time and money by implementing this technology into their practices,” says Womble Bond Dickinson.

AI can be easily customised. “You can program it to reflect a client’s level of risk aversion or risk tolerance and create a portfolio that matches,” states the report.

AI looks set to democratise the asset management business. By using AI smaller investment portfolios will be able to invest in sophisticated analysis customised to their own requirements.

“Millennial investors tend to seek out lower fees, regular portfolio rebalancing capabilities and transparency in reasoning. So effective use of AI can encourage wealth managers to reach further into the population of investors and build for the future,” says Womble Bond Dickinson.

“Some of these applications are already being used in the industry, while others are on the way. AI’s impact on every aspect of your practice is closer than you think. And if you do not capture its advantages, your competitors will,” concludes the report.

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Jun 18, 2021

GfK and VMware: Innovating together on hybrid cloud

GfK
VMware
3 min
VMware has been walking GfK along its path through digital transformation to the cloud for over a decade.

GfK has been the global leader in data and analytics for more than 85 years, supplying its clients with optimised decision inputs.  

In its capacity as a strategic and technical partner, VMware has been walking GfK along its digital transformation path for over a decade. 

“We are a demanding and singularly dynamic customer, which is why a close partnership with VMware is integral to the success of everyone involved,” said Joerg Hesselink, Global Head of Infrastructure, GfK IT Services.

Four years ago, the Nuremberg-based researcher expanded its on-premises infrastructure by introducing VMware vRealize Automation. In doing so, it laid a solid foundation, resulting in a self-service hybrid-cloud environment.

By expanding on the basis of VMware Cloud on AWS and VMware Cloud Foundation with vRealize Cloud Management, GfK has given itself a secure infrastructure and reliable operations by efficiently operating processes, policies, people and tools in both private and public cloud environments.

One important step for GfK involved migrating from multiple cloud providers to just a single one. The team chose VMware.

“VMware is the market leader for on-premises virtualisation and hybrid-cloud solutions, so it was only logical to tackle the next project for the future together,” says Hesselink.

Migration to the VMware-based environment was integrated into existing hardware simply and smoothly in April 2020. Going forward, GfK’s new hybrid cloud model will establish a harmonised core system complete with VMware Cloud on AWS, VMware Cloud Foundation with vRealize Cloud Management and a volume rising from an initial 500 VMs to a total of 4,000 VMs. 

“We are modernising, protecting and scaling our applications with the world’s leading hybrid cloud solution: VMware Cloud on AWS, following VMware on Google Cloud Platform,” adds Hesselink.

The hybrid cloud-based infrastructure also empowers GfK to respond to new and future projects with astonishing agility: Resources can now be shifted quickly and easily from the private to the public cloud – without modifying the nature of interaction with the environment. 

The gfknewron project is a good example – the company’s latest AI-powered product is based exclusively on public cloud technology. The consistency guaranteed by VMware Cloud on AWS eases the burden on both regular staff and the IT team. Better still, since the teams are already familiar with the VMware environment, the learning curve for upskilling is short.

One very important factor for the GfK was that VMware Cloud on AWS constituted an investment in future-proof technology that will stay relevant.

“The new cloud-based infrastructure comprising VMware Cloud on AWS and VMware Cloud Foundation forges a successful link between on-premises and cloud-based solutions,” says Hesselink. “That in turn enables GfK to efficiently develop its own modern applications and solutions.

“In market research, everything is data-driven. So, we need the best technological basis to efficiently process large volumes of data and consistently distill them into logical insights that genuinely benefit the client. 

“We transform data and information into actionable knowledge that serves as a sustainable driver of business growth. VMware Cloud on AWS is an investment in a platform that helps us be well prepared for whatever the future may hold.”

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