The role of artificial intelligence (AI) in the middle and back office is shifting from experimental to everyday infrastructure. Richard Thoeny, PreciseFP’s Executive Vice President of Product & Strategy, presents his predictions for how AI will fundamentally reshape the domains of operational efficiency, compliance and data management in the year ahead.
Here are his top five predictions for AI in WealthTech:
1. AI as the Ultimate "Friction Reducer”
In his estimation, the primary role of AI will be to reduce friction across all aspects of the client process. At this time, activities like account opening or data collection are often multi-step, labor-intensive efforts that can weigh people down. Going forward, we expect to see AI embedded across operations to counter these sticking points.
The days of manual data entry will be replaced by an AI-first interaction model to smooth out operational bumps that get in the way of efficiency and profit.
2. The Shift to AI-First Interactions
Traditional forms and buttons will no longer be the norm. Instead, Thoeny anticipates that conversational data extraction will take center stage. Once documents are in the system, technology can automatically pull all relevant data. In effect, the interaction is both intuitive and automated and doesn’t rely on human intervention.
As the industry stands to lose a large percentage of talent in the next decade, an AI-first approach might become more of a necessity than a novelty in some firms. According to McKinsey & Company’s February 2025 report, “an estimated 110,000 advisors (38 percent of the current total), representing 42 percent of total industry assets, are expected to retire in the next decade.”
3. Predictive Responses and Research-Based Automation
AI will become even more useful as a resource to offer predictive next steps. Beyond data storage, systems will become more dynamic. It will be possible for a platform to suggest the next three or four actions a user should take. We already see this example in chat interfaces, and we can expect it to become part of the DNA of middle and back-office technology.
This is a feature that has great potential in the areas of compliance and trade surveillance. Thoeny envisions a future where AI provides research-driven responses that prompt faster, more informed decisions with significantly less manual oversight.
4. Scalability Through Specialized AI Functions
AI holds great potential for deep specialization at scale. In the past, offering specialized services like estate planning or tax analysis meant you needed to have a team of experienced and well-paid professionals on board. Today, niche AI functions can now perform these tasks, so firms can stay competitive and relevant without the strain on payroll.
Thoeny posits that this scalability will naturally infiltrate operations. Compliance officers and operational staff will be able to lean on AI agents with such a deep knowledge base that no human can rival.
This access to on-demand expertise will allow firms to scale their service offerings and operational prowess.
5. The Imperative of Accuracy and Traceability
Despite the general sense of optimism, Thoeny calls out a dangerous reality. Enter “garbage in, garbage out.” This is to say: AI is a tool that can generate mistakes quickly if not managed correctly. In wealth management, data accuracy isn’t just a mere suggestion. A system can’t confuse a $300,000 net worth for $3 million without creating a stir and sounding an alarm.
The successful widespread adoption of AI hinges on data structure and traceability. It’s important that firm leaders can trace how an AI agent processed data, what prompts were used and what actions a human took. Education is a must. Teams need to understand these tools to use them smartly and avoid the fates that can come from unchecked automation.
At the same time, teams need to be mindful of how to maintain the personal element that was important to establishing client relationships in the first place. Per a May 2024 article from Deloitte, “the human touch remains essential for building trust and understanding clients’ unique goals.”
A Better Client Experience Starts Here
The future of the middle and back office belongs to those who work smarter. According to Schwab Advisor’s report “AI in Action: AI’s transformative impact on RIAs,” 28% of firms reported using AI to analyze firm data, and 26% are using it to automate workflows or current processes.
Take the next step in your journey. See how AI-enabled data gathering works in practice with a free 14-day trial of PreciseFP today.
