What happened
Wealth management firm AMP defended a 25% share price drop in February, following an 11% fall in full-year profit, attributing volatility to broader market conditions. CEO Blair Vernon outlined priorities including AI adoption, reporting 84% of staff use core AI tools weekly. AMP deploys AI in contact centres for transcription and quality checking, automates corporate functions, and uses it for note-taking within its North superannuation platform. The company's 2025 net profit was $133 million, down from $387 million in 2022.
Why it matters
AMP's significant share price decline and reduced profitability, despite high internal AI adoption rates, indicates that productivity gains from AI do not automatically translate to immediate investor confidence or improved financial metrics. For investors and founders in wealth management, this highlights a disconnect between operational efficiency improvements and market valuation, particularly amidst broader market volatility. Procurement teams evaluating AI solutions must consider the direct impact on core business revenue and profit, not just internal efficiency. This follows earlier reports of AI fears devaluing wealth managers.
Subscribe for Weekly Updates
Stay ahead with our weekly AI and tech briefings, delivered every Tuesday.
