It feels like the term AI, or Artificial Intelligence, is EVERYWHERE these days. Those who feel apprehensive about adopting more tech into their daily systems: we see you; we hear you, and your feelings matter…but change is happening, and it’s time to get comfy in the transition.  

The question is, are we ready for AI to manage our finances?

Here are some key points to consider when integrating AI into your firm:

        1.   AI can help find more suited potential clients by analyzing free data. 

 Advisors make their products more personalized by using collected AI data. AI enriches your portfolio design for clients because of its data resource. With this advancement, firms can search more precisely for compatible clients and team members and save time and labor for tasks with incomparable service quality, unlike firms rejecting AI tools.  

       2.   Your AI takes care of the easy work.

Chatbots cut work time dramatically with busy work such as cold emails, for example, from 15 minutes to 1 minute. AI capabilities can organize, summarize, and schedule to send emails and write up documents. It tracks different filing systems and alerts you when special attention is required. Imagine never needing to open an email from clients but starting your day with a summarized report of emails needing your attention and emails already taken care of!

       3.   Pattern recognition for financial predictions.

While collecting data, AI will keep tabs on the financial fluctuations of our economy. This will drastically separate you from RIAs and firms who are still hesitant to embrace the AI world. This opportunity is temporary. Don’t let it pass you by because of fear.

 

Our Fears

There’s an abundance of apprehension circling integrating AI into the financial sector. Rightfully so! Two reasons are fear of job loss and the client’s apprehension.  

      1.   Fear of Job loss. 

The common argument floating around today is AI will take ALL our jobs. Fear is a powerful influencer. It’s normal to feel insecure about the future. AI has incredible skills in advancing the quality of work put out. The good news (for us humans, anyway) is that AI is not a standalone, functioning professional. Humans will still need humans to connect and feel comfortable. It’s unknown yet if AI will adopt that ‘je ne sais quoi’ of human interaction.  

      2.    Client’s lack of trust.

 Because of the imperfections of AI tools, clients are hesitant to trust the collaborated data generated by an AI program. In a report recently done by the Financial Industry Regulatory Authority (FINRA), only 5% of people surveyed said they currently rely on AI for wealth advice, while 63% said they work with a financial professional and 56% said they consult with friends and family.

The report further breaks down specifics in AI tasks such as information on portfolio allocation, with 37% of people saying they would trust human professionals and 30% saying they would trust AI. This data shows clients are slowly adapting to the professional advances with AI technology. It is key for wealth advisors to keep current with AI developments within their field to keep up with the inevitable evolution of integrating AI into our professional worlds.

Continue to embrace AI’s evolution in the business sector and remember that we are in a transition period. Your clients have apprehensions and the technology is NOT self-sufficient. Although AI has its faults, it’s 100% recommended jumping on the tech train. But do not fret! AI will never replace the unique human connection between you and the client.  

How much of AI is integrated into your system?  Let us know in the comments below!