Financial Advisors Embracing AI Tools For Enhanced Client Services

Illustration shows Artificial Intelligence words

A wealth manager in Los Angeles, Arynton Hardy, is among the growing number of financial advisors incorporating artificial intelligence (AI) into their daily practices. Hardy, who works for the tech startup Savvy Wealth, utilizes AI tools such as an AI summarizer to streamline client meetings by providing notes, follow-ups, and to-dos. This integration of AI has significantly increased productivity by saving time on data entry and back-office tasks, allowing more focus on client interactions.

According to a report by the data-analytics firm Escalent, nearly 40% of financial advisors are leveraging generative-AI tools to enhance productivity, create content, and attract new clients. The potential of generative AI in the financial advisory sector is promising, with the aim of providing tailored and trustworthy money advice to individuals.

MIT researchers are working on training AI models to act as subject-matter experts in financial advice, aiming to meet fiduciary duty standards set by regulatory bodies like the SEC. Fiduciary duty requires financial advisors to act in the best interest of their clients, a standard that has been challenging to replicate in AI tools.

Nearly 40% of financial advisors are leveraging generative-AI tools for productivity enhancement.

Financial advisors are using AI tools like AI summarizers to streamline client meetings.

MIT researchers are training AI models to act as financial advice experts.

One of the key challenges in developing AI-powered financial advice tools is establishing trust with clients. Trust is often built through empathy and understanding, elements that AI models need to incorporate to effectively engage with users on an emotional level.

Companies like Conquest Planning have developed AI-driven financial-planning software that assists advisors in creating personalized financial plans for clients. This technology has been well-received in the market, with advisors noting significant time savings and improved financial plans for clients.

While the adoption of AI in financial advisory services is on the rise, many advisors are not yet prepared for AI to replace human advisors entirely. The transition to AI-driven advisory services may require retraining for advisors and potential government support to manage any social and economic impacts of widespread adoption.