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St James's Place has begun using artificial intelligence to identify and help customers who may be considered “vulnerable” when using its call centre.
Mark Fitzpatrick, chief executive of the UK's largest asset manager, told the Investment Association conference on Wednesday that his firm is using technology “intensively” and that “driving adviser productivity and effectiveness” is its “number one focus”.
“And very recently, we've deployed AI in our call centres to support and identify potentially vulnerable customers. The AI listens to calls and identifies intonations and types of language that may indicate a vulnerable customer.”
He added: “Telling your clients that they may actually be at risk suggests that it means something to the adviser, so they might want to engage with them a little bit differently.”
Britain's financial regulator has come under scrutiny of how asset managers treat customers since the introduction of “consumer duty” rules last year. SJP was forced earlier this year to set aside £426 million to compensate customers who felt underserved after a huge rise in customer complaints.
Fitzpatrick's comments come as asset managers and fund groups are looking to incorporate AI into their processes to improve operational efficiency. Asset managers are also increasingly using AI to guide investment decisions, identify revenue opportunities and assist with back-office administration.
SJP, which manages around £170 billion in assets, works with around 5,000 advisers, almost an eighth of the UK's total adviser network.
Fitzpatrick, who joined the asset manager last year from insurance company Prudential, said the firm was “experimenting a lot more” with technology.
He added: “I think AI should be part of every board discussion, and if it's not, I think we're missing out.”
“There will undoubtedly be a lot of money poured into AI. Some of it will be productive, but a lot of it will be at the expense of learning and experimentation.”
Other firms are also using AI to help with investment decisions: JPMorgan told the Financial Times it plans to expand its use of AI tools to flag questionable decisions by portfolio managers, such as potentially prematurely selling high-performing stocks.
But wealth managers know that clients want to talk to individuals who manage their money. Aaron Bates, head of the ultra-high-net-worth team at Bernstein Private Wealth Management, said last year that AI will “allow us to focus on staying competitive and being relevant to the next generation of wealth owners.”
SJP, which was demoted from the FTSE 100 earlier this week, has been in the spotlight recently over its fees, which have been criticised in the past as being opaque. The asset manager has pledged to scrap exit fees on some products for new clients from next year, among other changes to its fees.
