In the Gulf, one of the wealthiest regions globally, the full potential of transformative AI tools is taking shape, yet remains in its early stages. It is critical for the wealth management industry to ensure that the region’s full potential can be realised by leveraging these tools.
Personal wealth in the Middle East and Africa is expected to reach $7.1 trillion by 2026, though 70 per cent of the fortunes of affluent clients are managed offshore, according to Strategy&, the global strategy consulting arm of PwC. There is a significant shortage of advisers to support the growing influx of wealthy individuals.
Artificial intelligence technologies are disrupting industries worldwide, with media hype touting their game-changing potential while sceptics highlight the risks they potentially pose.
AI adoption in Gulf wealth management companies, however, remains nascent as professionals balance optimism with caution to protect client trust and portfolio integrity.
Yet, AI significantly predates the recent media buzz, with the umbrella term charting a progression since the 1980s, from rule-based models to deep learning, creative outputs and real-time decision making, all of which can be leveraged for wealth management.
This, coupled with the region’s growing wealth, offers a significant opportunity that overly cautious companies risk missing.
In the UAE alone, financial wealth grew by 20 per cent in 2021, reaching $700 billion, with 41 per cent of this wealth held by people with more than $5 million in assets – a sizeable portion of wealth that remains underserved by traditional approaches.
At the heart of much of AI’s potential is that elusive resource: time. The ability to automate administrative tasks such as data entry or report generation, as well as portfolio construction, rebalancing tools, and financial recommendations and execution enhances productivity. Chatbots eliminate the need for employees to answer routine questions.
AI also efficiently delivers tailored services that enhance both client and employee experiences. Hyper-personalisation through deeper, real-time insights into client behaviours and preferences, alongside customised communications and educational content helps advisers and customers make more informed recommendations and decisions.
Personalised training tools and practical hands-on experience for new advisers rapidly accelerate their learning, helping to bridge their shortage in the market.
Finally, AI supports companies’ credibility by automating compliance checks and detecting and assessing compliance risks by identifying patterns and anomalies that can be otherwise missed by human analysts. In sum, AI integration offers superior services without costing precious hours.
Advocating for AI adoption does not mean ignoring legitimate risks, but rather tackling the challenges that limit companies from realising its benefits.
Risk aversion itself remains a key hurdle, with concerns about data privacy, security, compliance and transparency resounding throughout the sector.
Companies worry about the “black box” nature of some AI models, fearing they cannot fully explain or control AI-driven decisions. That said, transparency within AI models has made considerable progress recently and robust governance and tailored AI models offer greater security and data privacy than third-party systems that employees can turn to without oversight.
While AI regulatory frameworks are still evolving, the region remains far ahead of the global curve, with most Gulf countries designing and releasing proactive AI strategies, including guidelines around ethics and data security.
Limited understanding and unrealistic expectations, which fuel scepticism and fear of AI, hinder adoption, but can be mitigated by recognising that the technology enhances rather than replaces human expertise.
Of course, technological advancements can be challenging to integrate with existing systems, and wealth management firms often struggle with legacy infrastructure. Fortunately, solutions to modernise legacy data are continually improving.
Cultural resistance and market comfort with the status quo also prevent AI use, though companies willing to lead the charge will be viewed as industry pioneers.
However, the most serious risk lies in the reality that AI is already commonplace, with a McKinsey global study finding that the use of AI doubled between 2023 and last year and 55 per cent of respondents regularly use generative AI both in and out of work.
If companies do not proactively adopt AI, employees are likely to turn to unsanctioned applications with the risk of compromising confidentiality agreements or data laws by the inadvertent sharing of sensitive client information.
AI use is inevitable, and only proper governance mitigates such serious breaches and ensures that outputs generated by AI align with company standards and regulatory requirements.
So where does this leave the region’s readiness for AI adoption? The UAE was the first country in the world to appoint a Minister for Artificial Intelligence in 2017, long before ChatGPT became common parlance.
With robust government backing for AI initiatives and substantial investment in education and infrastructure across the region, wealth management institutions in the Gulf are uniquely positioned to lead in AI adoption globally.
Governments are also spearheading implementation, offering wealth management firms a key opportunity to align strategies and leverage public-private partnerships to navigate regulations.
With intentional implementation, Gulf wealth management firms are not only ready for AI adoption but also poised to set the global standard and capitalise on regional revenue in the process.
Alexis Calla is chief AI officer at Alpheya
Company profile
Date started: 2015
Founder: John Tsioris and Ioanna Angelidaki
Based: Dubai
Sector: Online grocery delivery
Staff: 200
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends
Important questions to consider
1. Where on the plane does my pet travel?
There are different types of travel available for pets:
- Manifest cargo
- Excess luggage in the hold
- Excess luggage in the cabin
Each option is safe. The feasibility of each option is based on the size and breed of your pet, the airline they are traveling on and country they are travelling to.
2. What is the difference between my pet traveling as manifest cargo or as excess luggage?
If traveling as manifest cargo, your pet is traveling in the front hold of the plane and can travel with or without you being on the same plane. The cost of your pets travel is based on volumetric weight, in other words, the size of their travel crate.
If traveling as excess luggage, your pet will be in the rear hold of the plane and must be traveling under the ticket of a human passenger. The cost of your pets travel is based on the actual (combined) weight of your pet in their crate.
3. What happens when my pet arrives in the country they are traveling to?
As soon as the flight arrives, your pet will be taken from the plane straight to the airport terminal.
If your pet is traveling as excess luggage, they will taken to the oversized luggage area in the arrival hall. Once you clear passport control, you will be able to collect them at the same time as your normal luggage. As you exit the airport via the ‘something to declare’ customs channel you will be asked to present your pets travel paperwork to the customs official and / or the vet on duty.
If your pet is traveling as manifest cargo, they will be taken to the Animal Reception Centre. There, their documentation will be reviewed by the staff of the ARC to ensure all is in order. At the same time, relevant customs formalities will be completed by staff based at the arriving airport.
4. How long does the travel paperwork and other travel preparations take?
This depends entirely on the location that your pet is traveling to. Your pet relocation compnay will provide you with an accurate timeline of how long the relevant preparations will take and at what point in the process the various steps must be taken.
In some cases they can get your pet ‘travel ready’ in a few days. In others it can be up to six months or more.
5. What vaccinations does my pet need to travel?
Regardless of where your pet is traveling, they will need certain vaccinations. The exact vaccinations they need are entirely dependent on the location they are traveling to. The one vaccination that is mandatory for every country your pet may travel to is a rabies vaccination.
Other vaccinations may also be necessary. These will be advised to you as relevant. In every situation, it is essential to keep your vaccinations current and to not miss a due date, even by one day. To do so could severely hinder your pets travel plans.
Source: Pawsome Pets UAE
New UK refugee system
- A new “core protection” for refugees moving from permanent to a more basic, temporary protection
- Shortened leave to remain - refugees will receive 30 months instead of five years
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- To encourage refugees to integrate the government will encourage them to out of the core protection route wherever possible.
- Under core protection there will be no automatic right to family reunion
- Refugees will have a reduced right to public funds
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Starring: Amir El-Masry, Pierce Brosnan
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Rating: 4/5
MATCH INFO
FA Cup fifth round
Chelsea v Manchester United, Monday, 11.30pm (UAE), BeIN Sports
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Patrick Chamoiseau
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Euro 2020 qualifier
Ukraine 2 (Yaremchuk 06', Yarmolenko 27')
Portugal 1 (Ronaldo 72' pen)
Coffee: black death or elixir of life?
It is among the greatest health debates of our time; splashed across newspapers with contradicting headlines - is coffee good for you or not?
Depending on what you read, it is either a cancer-causing, sleep-depriving, stomach ulcer-inducing black death or the secret to long life, cutting the chance of stroke, diabetes and cancer.
The latest research - a study of 8,412 people across the UK who each underwent an MRI heart scan - is intended to put to bed (caffeine allowing) conflicting reports of the pros and cons of consumption.
The study, funded by the British Heart Foundation, contradicted previous findings that it stiffens arteries, putting pressure on the heart and increasing the likelihood of a heart attack or stroke, leading to warnings to cut down.
Numerous studies have recognised the benefits of coffee in cutting oral and esophageal cancer, the risk of a stroke and cirrhosis of the liver.
The benefits are often linked to biologically active compounds including caffeine, flavonoids, lignans, and other polyphenols, which benefit the body. These and othetr coffee compounds regulate genes involved in DNA repair, have anti-inflammatory properties and are associated with lower risk of insulin resistance, which is linked to type-2 diabetes.
But as doctors warn, too much of anything is inadvisable. The British Heart Foundation found the heaviest coffee drinkers in the study were most likely to be men who smoked and drank alcohol regularly.
Excessive amounts of coffee also unsettle the stomach causing or contributing to stomach ulcers. It also stains the teeth over time, hampers absorption of minerals and vitamins like zinc and iron.
It also raises blood pressure, which is largely problematic for people with existing conditions.
So the heaviest drinkers of the black stuff - some in the study had up to 25 cups per day - may want to rein it in.
Rory Reynolds
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