The offshore investment advisory industry is evolving and becoming more competitive, as firms (corporates, sell-side, and buy-side firms) consistently look for cost reduction (assuming revenue is constant). Hence, artificial intelligence will play a significant role in optimising efficiency and increasing productivity. This will result in significant reduction in operational costs.
However, outsourcing work to locations such as India is not going anywhere, as they offer a rich talent pool at a fractional cost. Such costs include:
- Hiring
- Training
- Salary
- Retirement Contributions
These are monetary compensations; when an employee leaves, it exposes the firm to incurring these costs all over again.
On the other hand, an offshore advisory team works as a hedge against these expenses. Our firm takes care of hiring, training, and replacing them as and when needed. This provides a significant hedge against these costs.
At Aureeos, we have integrated AI-enabled solutions. That resulted in lower operational costs, faster turnaround, and flexibility in our offerings.
Offshore advisory firms are facing stiff competition as there is no differentiation in their offerings. However, we aim to change that by removing redundancies in the segment and introducing new steps that would help firms realise benefits. Here is how we propose making changes using AI:
- Automation of Repetitive Tasks: AI-powered automation will oversee most repetitive and time-consuming tasks such as deal screening, data entry, and routine compliance checks. As per a report by Deloitte, automation will reduce human intervention, hence operational costs, by ~40-60%. Freeing human capacity will result in more focus on strategic, high-value advisory roles.
- Improved Accuracy and Risk Mitigation: As per McKinsey, the use of AI results in lower error rates during due diligence and risk assessment, mitigating compliance penalties and costly mistakes. AI can reduce the margin of human error by up to 80% in financial modelling and market size estimation.
- Enhanced Deal Sourcing Efficiency: AI-driven deal sourcing platforms enable the firm’s ability to evaluate a deal four times faster. A Gartner report highlights that firms using AI-based sourcing platforms reduce sourcing costs by 50%.
- Scalable Cost Savings: Offshore advisory operations provide cost arbitrage. The integration of AI into operations strengthens this arbitrage opportunity. As per Accenture reports, investment advisory firms leveraging AI-enabled offshore operations achieve total cost savings of 50-70% compared to traditional offshore models.
- Enhanced Decision-Making: AI systems enabled with predictive analytics help advisors make faster data-backed decisions. Bain & Company states that firms using AI-driven analytics reduce decision-making timelines by up to 60%.
At Aureeos Private Limited, we have successfully integrated AI into our offshore investment advisory operations, which resulted in:
A 50% reduction in operational costs compared to traditional offshore models.
b. Faster project turnaround with higher accuracy and consistency.
c. No minimum commitment, resulting in flexibility and scalability.
The usage of AI-driven methodologies within our consulting and advisory services offers unparalleled cost efficiency while maintaining high-quality.
In a rapidly evolving financial landscape, firms harnessing the full potential of AI stand to gain substantial operational and strategic advantages. At Aureeos, we are proud to be at the forefront of the AI-powered transformation in offshore investment advisory and consulting services.
How is your firm leveraging AI to optimize advisory costs and performance? I would love to hear your insights and experiences.
- Comprehensive Analysis for Enhanced Business Performance
- Holistic Approaches to Improving Customer Retention Rates
- Effective Leadership Development for Business Advancement
- Performance Metrics for Continuous Business Improvement
- Strategic Advisory to Foster Sustainable Business Growth