Broadridge Study Finds Surge in AI and Digital Asset Investments

Broadridge Financial Solutions has released its fifth annual Digital Transformation and Next-Gen Technology Study, revealing a sharp rise in AI and digital asset investments across financial services. This year, 80% of firms are making moderate-to-large investments in artificial intelligence, while 50% of executives expect significant adoption of digital assets and distributed ledger technology in the years ahead.

The findings suggest a widening gap between innovation priorities and structural limitations. While 58% of executives agree that a clear data strategy delivers maximum return on technology investments, 40% reported persistent issues with data quality. At the same time, 41% believe their technology strategy is moving too slowly, and 46% said legacy systems are weakening their firm’s operational resiliency.

“The right data management strategy has the power to break down silos”

Chris Perry, President of Broadridge, commented, “As financial services firms modernize their operations and move away from legacy systems, many are realizing that the right data management strategy has the power to break down silos and achieve the level of data quality needed to realize the potential of AI and sustain prolonged digital transformation within their organizations.”

Data harmonization emerged as a top priority, with 60% of respondents confident that their current data quality would not impede transformation. Financial institutions now expect to dedicate 29% of total IT budgets to technology innovation over the next two years, up from 22% last year.

Increased investment in generative AI marks a sharp shift in sentiment. This year, 72% of firms reported moderate-to-large GenAI spending, up from 40% in 2024. More than two-thirds said the greatest benefit lies in improved employee productivity, and 35% expect to see returns on investment within six months. Most executives said they personally use GenAI for investment or market research.

Digital assets, once approached with caution, are moving to the center of strategic focus. According to the report, 71% of firms are making major investments in blockchain and distributed ledger technologies, compared to 59% last year. Meanwhile, 64% are increasing crypto investment, and nearly half of respondents believe DLT is driving new opportunities in capital markets. A strong majority—73%—expect greater regulation and governance in the digital asset space going forward.

Cloud computing continues to be the most widely adopted core technology. Broadridge reported that 86% of firms are integrating cloud platforms into their operations, with 84% committing moderate-to-large investments. When asked which technology has the greatest business impact, 31% selected cloud, and 27% plan to increase spending in this area over the next two years.

Jason Birmingham, Broadridge Global Head of Engineering, commented, “It’s really all about straight-through processes and the ability to see consistent data across all products and workflows. Firms that are still trying to drive transformation by bolting on point solutions are quickly starting to realize that there is a limit to how much they can accomplish before they address the fundamental flaws in their platforms.”

The study, conducted by Phronesis Partners, surveyed over 500 technology and operations leaders across wealth management, capital markets, and asset management. The report captures how firms are recalibrating their digital roadmaps in response to shifting market demands, regulatory pressure, and the accelerating pace of innovation.