NICSA 2024 Highlights: AI, Alt Investments, and the road ahead

David Wu, Head of Generative AI at Morgan Stanley Wealth Management, gave a visionary keynote diving into the way that AI will transform asset and wealth management. I was particularly intrigued by the real use cases David presented that are already being deployed and impacting operations. 

Key Insight: My biggest takeaway was that AI isn’t poised to transform our industry—it already has. It’s time to get on board or get left behind. 

Joanne Kane, Chief Compliance Officer, Global Investor and Distribution Services, US, SS&C, moderated a panel featuring Dan Hays, Principal, Consulting Solutions, PwC; and Kelly Chapman, Head of Legal and CCO, Wave Digital Assets, that looked at the future of AI and Alts—specifically touching upon landmark regulatory shifts and how they will impact these sectors. 

The AI age has only just begun, and regulations will continue to evolve alongside our relationship with it, as they do with any new technology with such potential to disrupt the status quo.  

Key Insight: The technology driving AI and Alts is rapidly changing our industry, even faster than the regulatory bodies can keep up. Regulations always play catch up, however, but staying at the head of the pack will require staying on top of them. 

Doug Krupa, Managing Director and Head of Global Wealth Solutions in the Americas, KKR;  and David Unanue, Director of Wealth Management Investment Resources, Capital Group, sat down to chat about blending Alts with liquid mutual funds. The industry continues to push this asset class, and not only for Institutional, Ultra-High-Net-Worth (UHNW) Individuals and High-Net-Worth (HNW) clients.  

Retail clients can get in the game now, and for that matter, more creative solutions like the ones presented by KKR and Capital Group will only ensure that this trend continues to accelerate. 

Key Insight: Alts are shaking up a static industry, and they are already becoming a major part of serious portfolios. It’s time to give them a real look—before your competition does. 

Beralda Kokoshi, Business Development Lead, DTCC Digital Assets, presented a comprehensive look at asset tokenization. Of particular interest was DTCC’s solution that is already on proof of concept with Citi. 

Key Insight: As with AI, Alts are already here and we don’t have to guess the role that they will play. There are already solutions and use cases in existence, so take a needed, sharp look at what is currently available to see where the industry is headed. 

Lastly, a roundtable on alternative investments, moderated by Kirsten Pickens, Managing Director and Co-Head of U.S. Distribution, FS Investments; featuring Joanna Berg, Director and Senior Alternative Investments Strategist, BNY Advisors; Adam Pennacchio, Executive Director of Alternative Investments, Morgan Stanley; and Claire Sawyer, Program Manager of UniFi by CAIA™, CAIA Association, wrapped up the event. 

As Alts continue to advance and spread throughout the industry, it will certainly pay off to research and familiarize oneself with the space. It was great to see the industry efforts already being made to continue to educate customers and investors in integrating these products into their portfolios. 

Key Insight: There is already a wealth of information available to help savvy investors get caught up on this growing trend. The trick isn’t to find it, but rather, determining how to communicate it to advisors so they can pass it along to customers. 

At NICSA, we saw that AI and Alts aren’t on the horizon—they are already here. The best time to learn as much as possible was yesterday, and the second-best time is now. For AI, savvy businesses need to embrace digital transformation to take full advantage; for Alts, anyone who isn't seriously considering them to be a part of their portfolios is already falling behind. 

And with so much technological innovation taking place so quickly, regulations will inevitably start catching up. To stay on top of regulatory changes and to remain nimble enough to respond to them will be a priority for businesses that want to succeed through the end of the decade. 

Looking forward to seeing you at the Strategic Leadership Forum on March 5, 2025 in Fort Lauderdale, Fl, and the 2025 Asset & Wealth Management Summit in November 2025 taking place once again in Boston!