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The evolving dance of AI and financial advisers - Part 1

02 May 2024 Myra Knoesen

AI is a tool to elevate and redefine job duties, according to Ranie Verby, a Contributor on Advisor Perspectives.

“In our rapidly evolving technological landscape, artificial intelligence has made inroads into our daily workflows, performing tasks such as answering client emails, creating content and facilitating internal communication. Even Google’s auto-complete function in Gmail is a significant time saver. AI provides a sturdy foundation. Because of this, large firms have developed AI financial assistants,” she said.

Despite the vast utility, Verby says the advent of AI is not without its hitches. “The technology requires human intervention for research, fact-checking and voice modulation. Take, for instance, the SECURE 2.0 Act. Our firm and others have been interpreting and publishing content on this new law for months, but AI tools are somewhat behind in this aspect due to their lack of timely updates.”

But what does AI in the financial advice sector truly entail, and what are the misconceptions surrounding its role? Asked Verby.

The role of AI in finance

The introduction of any new technology, Verby says, inevitably fuels apprehension about job security, and AI is no exception. “Most recently, Hollywood writers and actors announced a strike against studios, with AI being a major point of contention. Technological advancements, including asset-aggregation systems and customer-relationship management tools, have all led to significant time savings and efficiency boosts. But those gains sometimes came at the cost of certain administrative roles.”

With a mindset change, Verby says AI can be seen not as a job-eliminating villain but as a tool to elevate and redefine job duties for financial analysts working on estate planning and more. “If AI can automate account applications, it will empower the personnel who previously handled that task to undertake new responsibilities within the firm, such as increased client interaction.”

But how can AI augment the work of fiduciary advisers while helping them stay relevant and competitive?

In part two of the article, we take a look at how AI can augment the work of advisers while helping them stay relevant and competitive.

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