The Future of Wealth Management: Ian McKenna on AI, Quantum Computing, and Financial Innovation

Artificial Intelligence (AI) is promising to advance how financial services are delivered and experienced. In an insightful conversation between Worth Magazine contributor and Ian McKenna, the Founder and Director of the Financial Technology Research Centre (FTRC), they explored the power of AI, automation, and quantum computing. 

Reflecting on two decades of technological evolution, McKenna shared predictions on how these forces might redefine wealth management over the next 20 years, likening AI's rapid development to “internet years.” With AI evolving at a pace where a single year may equate to several years of change, McKenna believes we are in an era where each year could bring generational advances.

In wealth management, AI is already proving to be a powerful ally for financial advisors, identifying trends and optimizing strategies with precision that was previously unimaginable. For instance, algorithms can analyze enormous amounts of data, including historical market trends, economic indicators, and client behaviors, to recommend investments and optimize portfolios tailored to individual client profiles. These capabilities empower advisors and free them from routine tasks, allowing them to focus more on strategic planning and client relationships.

However, McKenna stresses that AI should be an augmentative tool rather than a replacement for human interaction. As he notes, 

advice firms using AI will replace those that don’t,

underscoring that AI-equipped advisors will have a competitive edge. By automating up to 30% of advisor tasks, according to Accenture, AI can save time and improve the quality of financial guidance.

While AI’s data-driven insights can provide immense value, McKenna and other experts argue that AI will work best as part of a holistic approach that includes human expertise. Mark Alexander, head of technology at Rockefeller Capital Management, shares this view, noting that the human touch is indispensable, especially for clients with complex financial needs. AI can handle analysis and optimization, but empathy, intuition, and creative decision-making are qualities only human advisors bring to wealth management.

This balance between AI and human interaction could address a significant challenge in the industry: accessibility. Currently, high-level wealth management is often a luxury, but with AI’s efficiencies, wealth management might become more available, helping to democratize financial advice.

McKenna predicts that the integration of quantum computing with AI could trigger another leap forward. Quantum computing could enable financial algorithms to handle an even broader array of complex calculations at unprecedented speeds, offering predictive insights that go beyond human cognitive limits. Quantum-enhanced AI could help answer financial questions previously out of reach, creating more nuanced, tailored financial plans.

As McKenna explains, the era of quantum and AI will shift the focus from “what you know” to “how well you can frame the question.” Advisors may need to evolve, becoming less executors of plans and more strategic thinkers who can harness AI’s insights to address clients’ unique needs.

AI’s integration into wealth management raises profound questions about the future of work and wealth distribution. McKenna foresees a “post-work society,” where AI automates so many tasks that the traditional concept of a workweek may become obsolete. He also highlights the potential for AI to bridge societal wealth gaps—if managed responsibly. By making financial planning more accessible and removing traditional barriers to entry, AI could potentially promote financial inclusivity.

However, McKenna also acknowledges the risks of imbalance, where those with access to advanced AI might gain an outsized advantage, leading to even greater disparities. Thus, as the industry moves forward, ethical considerations and equitable AI access will be critical.

The potential for AI in wealth management is immense, but as McKenna warns, the industry must evolve thoughtfully. The next 20 years promise rapid advancements that could reshape every aspect of financial planning and advisory services, creating both unprecedented opportunities and challenges. Firms that embrace AI and prioritize the human element will be well-positioned to thrive in this new era, leading the charge toward a more inclusive, innovative, and sustainable financial landscape.

As we stand at the cusp of this transformation, wealth management professionals, technology leaders, and policymakers must collaborate to ensure that the future of AI in wealth management serves the broader good.