Financial Firm Investment in Gen AI Surges, Cybersecurity Remains Priority

Financial firms are doubling down on artificial intelligence—generative AI in particular—with significant investments in the technology, while cybersecurity remains their top priority, according to a report from Broadridge Financial Solutions.

AI is now the third-most frequently used technology in financial firms’ operations and processes, according to the report, which was based on a survey of more than 500 technology and operations professionals in wealth management, capital markets, and asset management firms.

Among the firms polled, 86% responded that they plan to increase their investments in AI over the next two years, while 72% are making “moderate to large investments” in GenAI in 2025, a big jump from last year, when only 40% said the same thing.

According to Broadridge, the main reasons the companies reported planning to implement GenAI tools include reducing costs and improving efficiency, which was cited by 29% of the respondents. Another 28% said it was to improve customer experience, and 19% said it was to improve employee experience.

The survey also found that many of the firms have optimistic outlooks regarding the returns they expect to see from their AI investments. One-third of respondents said they expect to see a return on their GenAI investment within one to two years, while 24% expect payback in three to four years. Another 21% are even more optimistic and believe their GenAI investments will be fruitful within six months, while only 8% said they do not expect returns for at least five years. And 14% say they are already seeing the benefits.

Blockchain is also a main target for financial firms as 71% of respondents said they are making major investments in blockchain and distributed ledger technologies in 2025, up from 59% in 2024, while 64% said they are making large investments in cryptocurrency, compared with 51% last year.

Despite the firms’ enthusiasm about AI, 74% of respondents said they believe GenAI should be more tightly regulated. Additionally, among firms that are hesitant to adopt AI, 57% said they are concerned that the technology is still too immature, and 42% said they lack confidence in what the return on investment will be, with 28% saying they are wary of regulatory constraints and policy restrictions.

Although investment in AI is growing sharply, the survey found that cybersecurity technology is still where financial firms are making their biggest tech investments, which was named by 87% of respondents. This was followed by advanced analytics and data visualization, which was cited by 85% of respondents, with cloud platform close behind at 84%, and AI at 80%.

The report primarily attributed the firms’ continued focus on cybersecurity to increasingly sophisticated cyber attacks. The survey found that two-thirds of respondents have cybersecurity technology to safeguard sensitive data and keep up with ongoing regulatory compliance, while 87% said they plan to make moderate to large investments in cybersecurity this year. However, the report also noted that despite these concerns, 34% said they do not have cybersecurity technologies built into their operational infrastructure.