Wealth management firms face a critical period by 2026 where technology choices will determine their success, according to a new outlook from F2 Strategy. The consultancy’s research points to sharp divergences in how firms are deploying tools for alternative investments, artificial intelligence, and custody solutions. This period of economic uncertainty is expected to highlight which firms have built robust technology infrastructures.
F2 Strategy’s 2025 polling gathered insights from CTOs, COOs, and CEOs at 85 RIAs, wealth managers, broker-dealers, and asset managers. These firms collectively oversee more than $61 trillion in assets. The report suggests that market volatility will clearly show who has invested wisely in technology and who has fallen behind.
The strategic deployment of wealthtech is not just about efficiency. It is increasingly a differentiator for client experience and long-term viability. Firms must now focus AI-enabled capacity on structured growth efforts to convert time savings into revenue.
Alternative investments represent a significant challenge and opportunity. Average allocations to alternatives rose from $7.5 billion in 2022 to $12 billion in 2025. This increase introduces more complex portfolios and greater operational risks for firms.
Despite this growth, only 50% of firms utilize a third-party system to manage these assets. The expansion of alternatives into the retirement space further complicates this issue. Firms need technology to automate processes for illiquid positions and streamline ownership and reporting. As blockchain and distributed ledger tools advance, F2 Strategy anticipates increased pressure on costs and more transparent data flows in this market sector.
Artificial intelligence is another key area creating a divide among firms. The adoption rate of AI tools climbed significantly, from 51% in 2023 to 74% in 2025. Firms that have implemented AI are reporting several benefits. These include cost savings, fewer not-in-good-order errors, better preparation for client meetings, and more time for high-value work.
However, F2 Strategy cautions that time savings do not automatically translate into increased revenue. Leadership teams must direct AI-enabled capacity toward structured, organic growth initiatives by 2026. This approach aims to ensure advisors use their newfound efficiency for prospecting and expanding their client base. Read more about how wealth managers install AI leadership roles to meet strategic requirements.
The gap in AI adoption between different types of wealth management firms is particularly striking. Just 23% of bank trust operations currently use AI. In contrast, 95% of RIAs have adopted these tools. This disparity means that while investors may not differentiate between an advisor at a bank and one at an RIA, the underlying technology infrastructure differs significantly.
RIAs, with their quicker adoption of AI and other advanced tools, are better positioned. They can deliver smoother client experiences and more efficient back-office operations. If bank-based wealth firms cannot bridge this technology gap, F2 Strategy warns they risk undermining the marketability and long-term viability of their franchises. Experts also predict what’s next for AI in wealthtech as advisors expand its use.
Custody decisions are also evolving beyond simple relationship management into a crucial technology and efficiency concern. Two-thirds of wealth firms currently rely on multiple custodians. This approach can introduce complexities that technology must address.
The efficient management of diverse custodial relationships requires robust technological solutions. Firms must integrate these systems effectively to ensure seamless operations and accurate reporting. The focus is shifting towards how technology can optimize these critical back-office functions. Wealth advisors are also shifting focus to proactive planning, which relies on efficient data and integrated systems.
The F2 Strategy outlook highlights the urgency for wealth management firms to make informed technology investments. These decisions will ultimately dictate their competitive standing and operational resilience in the coming years. Firms must carefully evaluate their tech stack in alternatives, AI, and custody to thrive amid economic shifts.
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