Core Insights - Asset and wealth management firms are focusing on AI-driven innovation, new products, and enhanced client experiences as primary growth drivers in the industry [2][3] Group 1: AI Integration - A significant shift from exploration to implementation of AI is observed, with 95% of firms believing AI will positively impact the industry and 96% agreeing it will enhance per-employee productivity [3][4] - AI is seen as most valuable in communications and messaging (30%), research (20%), marketing, sales, and content development (15%), and data synthesis (14%) [4] - 61% of firms expect AI to be a high strategic priority moving forward, an increase from 38% the previous year [4][7] Group 2: Product Innovation - The survey indicates a shift in product preferences, with active ETFs (72%), private markets/alternatives (60%), and separately managed accounts (51%) expected to see the strongest asset growth over the next two years [5][6] - 81% of wealth managers plan to support alternatives within model portfolios, indicating a commitment to tailored investment solutions [9] Group 3: Younger Investors - 87% of firms agree that younger investors require different products and service models, yet only 30% are actively adjusting their strategies to cater to this demographic [10] - The top challenges in serving younger investors include providing digital tools (42%), engaging through traditional channels (41%), and building long-term loyalty (35%) [10] Group 4: Workforce and Hiring Trends - Nearly half (48%) of firms expect to increase headcount over the next two years, with differing priorities between asset and wealth managers [11]