A new study by Broadridge Financial Solutions shows that 80% of firms are making substantial investments in artificial intelligence (AI) and digital assets. As financial institutions seek to modernize operations and remain competitive, the adoption of cutting-edge technologies is accelerating across the board. However, significant challenges in data management and outdated infrastructure threaten to slow down this transformation.
Firms Embrace AI and Digital Assets
The Broadridge survey highlights a major shift in the financial industry’s approach to technology. Companies are allocating larger portions of their budgets to AI-driven analytics, trading algorithms, and blockchain-based assets, signaling a commitment to digital transformation.
AI is being used to enhance customer experience, automate compliance tasks, detect fraud, and improve decision-making through advanced data analysis. Meanwhile, digital assets, including cryptocurrencies and tokenized securities, are gaining traction as firms diversify their offerings and respond to growing client demand for digital investment products.
Data Harmonization Remains a Key Obstacle
Despite this enthusiasm, firms face significant hurdles — chief among them is data harmonization. Many financial institutions operate with data silos across multiple departments and legacy platforms. Integrating these disparate data sources into a unified, usable format is critical for AI systems to function effectively.
Without proper data harmonization, the accuracy, speed, and predictive capabilities of AI models are compromised. Similarly, the full potential of digital assets, particularly when integrated into traditional finance systems, depends on seamless data interoperability and real-time data access.
Legacy Systems Hold Back Innovation
Legacy technology remains another major barrier. Many firms still rely on outdated core systems that are ill-suited for rapid integration with modern AI tools and blockchain networks. Upgrading or replacing these systems is often expensive and complex, leading to hesitation or piecemeal digital initiatives.
This results in slower innovation cycles, increased operational risk, and missed opportunities to leverage new technologies for competitive advantage.
The Path Forward: Investing in Infrastructure and Talent
To overcome these challenges, firms must invest not only in new technologies but also in foundational upgrades to their data infrastructure. Implementing robust data management strategies, adopting cloud-native solutions, and recruiting tech-savvy talent will be key to fully realizing the benefits of AI and digital assets.
Firms that prioritize long-term digital infrastructure investment and cross-functional data integration will likely emerge as leaders in the financial sector’s next era.
The surge in AI and digital asset investment marks a turning point for the financial industry. However, without addressing data and legacy system challenges, firms risk falling short of their transformation goals. Those that can align technology innovation with data readiness will be best positioned for future success in an increasingly digital economy.
