GenAI Delivering Now, Tokenization Is Next: Financial Services Enters Period of Accelerating Transformation, Landmark Broadridge Study Finds

Core Insights - The financial services industry is experiencing a significant transformation driven by the deployment of generative AI (GenAI) and the upcoming tokenization of market infrastructure [1] - A majority of firms are moving from GenAI experimentation to scaled execution, with 80% reporting the use of generative or predictive AI in operations, a substantial increase from 31% the previous year [1] - Tokenization is viewed as a long-term structural evolution in financial markets, with 54% of firms making moderate to large investments in tokenization and digital asset infrastructure [1] AI Adoption - AI adoption has accelerated, with 72% of firms making moderate to large investments in GenAI, and 27% reporting measurable business benefits, a 13-point increase year over year [1] - The use of agentic AI is emerging, with 26% of firms currently deploying these systems, particularly among large institutions managing over $250 billion in assets [1] - Concerns about GenAI ROI have decreased to 33%, down from 42% a year ago, indicating growing confidence in AI's returns [1] Tokenization Trends - Firms are increasingly viewing tokenization as a structural evolution rather than a short-term replacement, with 53% believing distributed ledger technology (DLT) will dramatically affect asset settlement [1] - Market participants expect a significant portion of major asset classes to be tokenized within the next four to five years, with 70% stating that external partnerships will be critical for capturing value [1] - Benefits of tokenization include enhanced liquidity, improved operational efficiency, and faster settlement, although firms acknowledge risks such as regulatory uncertainty and cybersecurity [1] Execution Challenges - The primary barriers to progress in AI and tokenization initiatives are related to execution capabilities, with 84% of firms emphasizing the need for integrated platforms [1] - Talent gaps are a significant concern, with 37% citing a lack of skilled talent as a barrier to agentic AI adoption, and 38% identifying it as the biggest barrier to GenAI adoption [1] - A majority of firms (65%) report having no formal mandate for AI use, highlighting a need for structured incentives and training [1]