Artificial Intelligence (AI) is continually seeking to play an increasingly larger role in the financial planning and wealth management industry, significantly improving some aspects of the industry. The bigger question is how does AI impact our iWealth team and our clients?
Enhancing Advisor Efficiency and Productivity
AI can automate many routine, time-consuming tasks such as creating notes from client meetings and synthesizing data into customer relationship management systems. This allows our financial advisors to spend more time with our clients, thereby deepening relationships with you and improving service quality.
Does AI Provide Personalized Advice?
While AI can enhance the personalization of financial advice by tracking and logging client information, monitoring accounts for activity or changes, and running quantitative analyses, where AI falls short is tailoring that data to a client’s unique life situations. While Artificial Intelligence can provide advice based on data, AI lacks the intelligence regarding a client’s life situation, as well as how their values and goals may impact the decision making process.
Improved Decision-Making
Compared to a decade or two ago, AI does provide wealth managers access to real time data-driven insights and recommendations, which has revolutionized the decision making process by having data instantly available. This can help advisors make better recommendations to clients as to what investments have good potential, as well as where to minimize risk. However, AI is not currently able to tailor the data to individual client’s preferences, values, goals and dreams.
Does AI Really Provide 24/7 Client Support?
At iWealth, we believe that true client support is a real person providing tailored services for our clients. Everyone has seen companies trying to use AI to provide customer service through chatbots and virtual assistants on a website. However, our iWealth team believes AI falls short in the wealth planning industry, as it does not provide the reliable and personal service that our clients deserve.
Generative AI and Future Trends
Generative AI, a subset of AI, is transforming wealth management by enhancing tasks such as information retrieval, synthesis, and content generation. Eventually, this technology is expected to significantly impact areas like alpha generation, financial advice, client onboarding, and investment operations. iWealth employs AI to help generate aspects of our content marketing, which enables our team to produce educational content in a timely manner for our clients. However, while AI may be the basis of some of our marketing, it is always personally edited to ensure our clients receive relevant and reliable information.
Market Impact and Growth
The adoption of AI in wealth management, also known as Robo Advisors, is expected to drive significant growth. For instance, assets managed by AI-enabled digital platforms are projected to nearly double by 2027, reaching almost $6 trillion. These services can be great for those who are looking for avenues to enter the market and to initially grow their investments. However, there comes a time where a wealth management advisor becomes a valuable asset in looking at wealth preservation, tax strategy, legacy advising, estate planning, insurance options – and so much more. Artificial intelligence truly lacks the ability to comprehensively look at your financial picture and provide tactical advice on how to help you attain your future dreams.
In summary, AI is revolutionizing wealth management by enhancing efficiency, decision-making, and risk management. The strategic integration of AI is essential for firms to remain competitive and meet evolving client expectations. However, AI has a long way to go before clients can solely trust AI with their financial dreams.
