It’s funny, despite the extraordinary level of investment in AI, use cases may appear limited at first glance. There are a few game-changing examples or “killer apps” to highlight. However, its influence is subtly growing across various aspects of our daily routines. From refining search results in Google, assisting with email composition in Outlook, analyzing portfolios in Morningstar, to summarizing transcripts in FactSet, AI is quietly integrating itself into the background of our tasks. These incremental improvements, like summarizing key points or suggesting content, are gradually making our lives more efficient. This nuanced presence suggests two things, we’re only at the tip of the iceberg of this nascent technology and AI is much more of a complement than a replacement for advisors.
Here are a few ways financial advisors are already leveraging artificial intelligence to enhance their services:
- AI Meeting Companions – These innovative tools record, transcribe, and summarize meetings, enabling financial advisors to fully engage with their clients. While many advisors are accustomed to taking notes, it’s challenging to capture every detail. AI meeting companions address this gap by providing a comprehensive record of the conversation, along with concise summaries. This not only enhances the advisor’s efficiency but also supports compliance by ensuring accurate documentation. As these tools evolve, we anticipate that they will not only summarize discussions but also analyze them to offer actionable insights. Over time, such capabilities could significantly enhance an advisor’s skillset, moving beyond simple notetaking to become a crucial part of client engagement and strategy development.
- Customer Service – For years, financial advisors have sought ways to streamline tasks like scheduling meetings, answering frequently asked questions, and addressing basic client needs. While automation promised efficiency, it often fell short, leaving both advisors and clients frustrated. However, AI is transforming this landscape. By integrating AI-powered chatbots with company-specific data, firms can provide accurate, conversational responses to client inquiries. This technology allows for seamless scheduling and rescheduling of appointments and offers clients easy access to account information. While AI won’t entirely replace direct calls to advisors or service teams, it effectively reduces the volume of routine inquiries, allowing advisors to focus on more complex and valuable tasks. This not only enhances the overall client experience but also optimizes the use of advisors’ time and expertise.
- Co-Pilots – Financial advisors frequently use common applications like Microsoft Office, Morningstar, planning software, and Salesforce, which are gradually integrating AI features. These enhancements often make existing functionalities more intuitive and user-friendly. For example, AI-driven tools in Excel can assist users in building complex spreadsheets with advanced functions, while PowerPoint can automatically design professional-looking presentations with ease. Moreover, AI capabilities are providing deeper insights and analytics, aiding advisors in making more informed decisions. For instance, tools like Microsoft’s “Ideas” feature in Excel can suggest trends, insights, and visualizations based on the data input, allowing advisors to spot patterns and opportunities that might not be immediately obvious. Additionally, Salesforce’s AI, known as Einstein, offers predictive analytics, lead scoring, and automated workflows, which help advisors prioritize their tasks and focus on high-impact activities. These AI enhancements not only boost productivity but also enhance the quality of service that advisors can provide to their clients.
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- Digital Marketing – Carson Group’s VP, Integrated Marketing, Sam Allen describes AI in marketing as “an addition to your team,” underscoring its potential to enhance and streamline promotional efforts. For financial advisors looking to market themselves on social media, AI can play a pivotal role in analyzing data to optimize advertising strategies. Large language models (LLMs), like ChatGPT, can generate engaging content, such as social media posts, blog entries, or newsletters, tailored to specific audiences. For example, AI tools can analyze which posts are generating the most engagement and suggest similar content or optimal posting times. Sam also emphasizes that while AI can handle routine tasks, it accentuates the importance of authentic, personal connections. Advisors can leverage AI to automate repetitive tasks like scheduling posts or responding to frequently asked questions, freeing up more time to focus on building genuine relationships with clients. This blend of automation and personal touch ensures that advisors can maintain a consistent and authentic presence online, enhancing their brand and client trust.
- Personalization and Customization – AI is revolutionizing traditional tools in the financial industry by enabling highly personalized and customized portfolio construction. Financial advisors can now leverage AI to quickly analyze client portfolios, providing tailored insights and wealth planning strategies. For example, AI platforms like Wealthfront and Betterment use algorithms to create personalized investment strategies based on individual risk tolerance, financial goals, and market conditions. Moreover, AI can help advisors identify potential risks and opportunities within a client’s portfolio by analyzing historical data and market trends. For instance, tools like BlackRock’s Aladdin and IBM’s Watson can provide risk management insights by forecasting market movements or identifying asset correlations. These systems can also suggest rebalancing strategies or alternative investments to optimize portfolio performance.
For more content by Jake Bleicher, Portfolio Manager click here.
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