How will AI revolutionize Wealth Management?

How will AI revolutionize Wealth Management?

As we explore the vast potential of AI in wealth management, it's essential to focus on what Financial Advisors must do to prepare for the future. How can they attract new clients, retain existing ones, and become better, faster, and smarter Advisors?

Jack Casady

Since the launch of ChatGPT, Google's Bard, and Microsoft's Bing AI, a multitude of AI options have become available for everyone, including Financial Advisors and their clients.

In a recent Accenture Study, 9 out of 10 Advisors stated they believe that AI can help grow their book of business by more than 20%. Moreover, 55% of them think AI will transform or revolutionize the future of financial advice within the next 3 years.

Only 9 months ago, many were left wondering if AI would be part of our daily lives. Now, the real question is how Financial Advisors can safely adopt AI to enhance their practices.

As we explore the vast potential of AI in wealth management, it's essential to focus on what Financial Advisors must do to prepare for the future. How can they attract new clients, retain existing ones, and become better, faster, and smarter Advisors?

Leverage AI adoption to excite clients

According to a Morgan Stanley Wealth Management survey, 63% of 924 investors were interested in working with an advisor who uses AI tools. This demonstrates a clear demand for AI-powered wealth management tools. While initial fears suggested AI might replace financial advisors, the truth is far different. The same study revealed that 88% of investors felt human-to-human relationships were essential.

With this in mind, there's immense potential to adopt AI-enhanced systems and tools to streamline mid and back-office tasks and advisors that do so will save immense amounts of time that can be better used to serve their own clients and discover new clients.

Unlock mass personalization with AI

AI can bring unprecedented personalization to clients, as AI-powered tools can generate insights specific to each individual. Nitin Tandon, Chief Information Officer at Vanguard, suggests that AI-enabled applications will lead to financial advisors serving customers more expertly, increasing their share of assets under management at the expense of practices that don't adopt AI. This highlights the benefits of AI for both clients and financial advisors.

Advisors using tools that intake massive amounts of client data can leverage AI to obtain a comprehensive history of each client. This allows them to derive better insights, build personalized plans while saving time, and reducing errors from missed paperwork or human mistakes. AI-enhanced advisors will be better equipped to retain current clients and grow their practice by showcasing a modern approach to business.

Financial chatbots - 24/7 availability for clients

Implementing AI in wealth management will improve communication efficiency between advisors and clients. AI-powered chatbots and virtual assistants can handle customer queries and provide educational content previously managed by humans. This frees up advisors to focus on high-level work, such as data analysis and investment decisions requiring expertise.

In summary, AI empowers Financial Advisors

AI is set to revolutionize the wealth management space, with a clear demand for AI-powered tools from both clients and Financial Advisors. AI can benefit wealth management firms by improving communication efficiency, education, personalization, and more. Implementing AI can free up advisors to focus on higher-level work and provide better services for their clients. While AI won't replace financial advisors, it will assist with various cognitive tasks and financial education for both advisors and clients. Wealth management firms and financial advisors should adopt AI-powered tools to keep up with the ever-changing technological landscape.

Learn how we can make you AI-empowered.

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