How to Make AI Your Ally

Is the rapid rise of AI making you feel like you're falling behind? Many in the industry are grappling with concerns about productivity, job security, and the perceived flaws of current AI-driven tools. But the truth is, AI can be a powerful ally.

Artificial intelligence, or AI, is a broad area of computing focused on developing systems that can mimic human intelligence to solve complex tasks. It's already transforming industries, and financial planning is no exception. From generative AI to machine learning, these technologies offer immense potential to boost efficiency, acquire new clients, and deliver highly personalized services. In fact, a 2024 Celent survey found that wealth managers are prioritizing AI investments in client-facing tools, acquisition, and onboarding.1

Let’s debunk some common myths and explore how AI can help your practice evolve.

Myth #1: AI Chatbots Will Replace Financial Advisors

“AI technologies like ML [machine learning] will never replace advisors or do planning for them … They will make financial planning software an even more intelligent partner for advisors of any level of expertise by enhancing planning efficiency and expanding planning knowledge.” —Nick DiLisi, Head of Technology | eMoney

While AI can enhance the financial planning process, human interaction will always be necessary, especially for “do it for me” investors. With a graying advisor population and the number of high-net-worth individuals continuing to increase, scaling capabilities with technology seems like a prudent approach. To explore more of DiLisi’s insights, read The Role of Artificial Intelligence in Financial Planning.

Myth #2: AI-enabled Financial Planning Technology Isn’t on the Market Yet

“In financial planning technology, ML [machine learning] is everywhere, and you’re probably using it regularly without even realizing it.” —Nick DiLisi, Head of Technology | eMoney

The leading financial planning platforms are already making use of machine learning and other AI technologies to boost users’ efficiency and make planning more personalized. That’s why it’s a best practice to keep up with the release of new features and find ways to incorporate them into your processes.

Learn more about best practices and ways to ready your firm in the article, Prepare Now for AI Use in Financial Planning.

Myth #3: AI-enabled Tools Aren't Developed Enough Yet; It’s Too Early for Advisors to Use Them in Their Practices

Advisors are using AI tools in their practices, and finding them highly capable. These tools can even tackle one of the most cumbersome tasks for advisors: summarizing a client meeting with notes and tasks in a CRM system.

“Advisors use Sybill for its AI behavioral analysis of video calls and sales interactions. It can transcribe a Zoom meeting with a prospect, create notes that include to-do items, and send a meeting follow-up email. However, the best part is getting a rundown of points of engagement and friction during the interaction.”—Valerie Rivera, Product Marketing Manager | eMoney

Want to learn more about the tools available? Check out 4 Promising AI Tools for Financial Advisor Marketing and Prospecting.

Unlock New Possibilities

How do you use AI in your practice? Join the discussion by posting your thoughts in the comments section.

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Source:

1. Celent. “ Dimensions: Wealth Management IT Pressures & Priorities 2024,” May, 2024.