CNBC Events’ Post

What's on the horizon for Financial Advisors? From incorporating AI, navigating the next wealth transfer, and the shifting landscape of RIA custodians, Betterment's Thomas Moore shares his thoughts: https://lnkd.in/epwUvPuB

Embracing change and being open to new technologies are pivotal for advancing any industry, and financial services is no exception. The sentiment in this quote perfectly captures the core principle that drives QuAIL Technologies' innovation.    By aligning our efforts with this forward-thinking mindset, we aim to empower financial advisors to adapt to and thrive in the age of AI.     "I think really the bigger indicator of success for us (financial advisors) is just a willingness to embrace a new and better way of doing things. It's a little bit of a leap to change your processes and the way you've always done things, but valuing new technology and a willingness to make change to drive efficiency is the core indicator."   #investments #Fintech #AIforBusiness #FinancialAdvisor #financialliteracy #technology #AIinFinance #QuAILTechnologies #financialfreedom

Respectfully, if your financial advisor fears AI, he or she is focusing on the wrong things. I can recall similar arguments about 10-12 years ago when the term “Robo-advisors” burst on the scene to describe a technology that was based on an algorithm that was programmed in a particular way to “manage” a portfolio. Because it did not have a traditional human advisor and fees were a fraction of typical rates, some advisors expressed concern that it would end their role as a wealth manager. Well, it didn’t and neither will AI, because the inherent complexities and nuances that need to be navigated in this profession cannot possibly be replaced by AI. Full stop.

We’re unabashed proponents of what Artificial Intelligence can offer. There are investment opportunities in the AI space which can not be ignored. Equally, there are ever-evolving ways in which we can improve how we do things on a day-to-day working basis with these technologies. Understandably, the AI revolution has entered the space of investment advice, in the form of what is sometimes referred to as robo-advisers. The lure of a seemingly all-knowing computer that can provide advice on investment allocations, at a low cost, seems like mana from heaven to many. These platforms, celebrated for their efficiency and automation, promise to simplify investing, but it’s crucial to question whether they fully deliver on the broader objectives of financial advising, or are actually a form of fool’s gold. The essence of valuable financial advice lies far beyond algorithms and automated asset allocation. It's rooted in deeply understanding the individual behind the finances — their dreams, challenges, and unique circumstances. Here’s where the human element of financial planning really shows its worth: 1. Personal Relationships: Unlike robo-advisers, a human financial adviser builds a relationship with you. They celebrate your successes and support you through tough times, providing personalised advice that evolves with your life. 2. Holistic Understanding: Your financial landscape includes more than just your assets; it involves your family, career, lifestyle, and long-term aspirations. A financial adviser takes all these into account, offering strategies that are both comprehensive and customised. 3. Adaptability: Life is unpredictable - particularly in the current decade. Markets shift and personal situations change. Human advisers excel in adjusting your financial strategy on the fly, considering both economic conditions and personal transitions—something that preset algorithms struggle with. 4. Ethical Considerations: Financial advisers can tailor your investments to your values, ensuring your money works both for you and for the causes you care about. 5. Education and Empowerment: Beyond managing money, financial advisers empower clients through education. They demystify complex financial concepts, enhance your financial literacy, and enable you to make more informed decisions. The allure of robo-advisers is undeniable. They have their place as a tool, sitting on the tool-belt among many others. However, by relying solely on digital advice, it’s possible to overlook the benefits of human insight and personalisation — crucial for achieving truly effective financial outcomes. #ai #artificialintelligence #sydneyfinance #sydneyfinancialplanner #financialadviser #financialadvisor #financialfreedom #financialindependence #mindset #lifeplanning

We’re unabashed proponents of what Artificial Intelligence can offer. There are investment opportunities in the AI space which can not be ignored. Equally, there are ever-evolving ways in which we can improve how we do things on a day-to-day working basis with these technologies. Understandably, the AI revolution has entered the space of investment advice, in the form of what is sometimes referred to as robo-advisers. The lure of a seemingly all-knowing computer that can provide advice on investment allocations, at a low cost, seems like mana from heaven to many. These platforms, celebrated for their efficiency and automation, promise to simplify investing, but it’s crucial to question whether they fully deliver on the broader objectives of financial advising, or are actually a form of fool’s gold. The essence of valuable financial advice lies far beyond algorithms and automated asset allocation. It's rooted in deeply understanding the individual behind the finances — their dreams, challenges, and unique circumstances. Here’s where the human element of financial planning really shows its worth: 1. Personal Relationships: Unlike robo-advisers, a human financial adviser builds a relationship with you. They celebrate your successes and support you through tough times, providing personalised advice that evolves with your life. 2. Holistic Understanding: Your financial landscape includes more than just your assets; it involves your family, career, lifestyle, and long-term aspirations. A financial adviser takes all these into account, offering strategies that are both comprehensive and customised. 3. Adaptability: Life is unpredictable - particularly in the current decade. Markets shift and personal situations change. Human advisers excel in adjusting your financial strategy on the fly, considering both economic conditions and personal transitions—something that preset algorithms struggle with. 4. Ethical Considerations: Financial advisers can tailor your investments to your values, ensuring your money works both for you and for the causes you care about. 5. Education and Empowerment: Beyond managing money, financial advisers empower clients through education. They demystify complex financial concepts, enhance your financial literacy, and enable you to make more informed decisions. The allure of robo-advisers is undeniable. They have their place as a tool, sitting on the tool-belt among many others. However, by relying solely on digital advice, it’s possible to overlook the benefits of human insight and personalisation — crucial for achieving truly effective financial outcomes. #ai #artificialintelligence #sydneyfinance #sydneyfinancialplanner #financialadviser #financialadvisor #financialfreedom #financialindependence #mindset #lifeplanning

Financial industry grappling with AI's gifts and perils, executives say The rise of AI in financial services presents significant opportunities but also substantial risks, particularly due to the sensitive nature of the data managed by asset managers. AI systems can potentially outperform humans in explaining decisions regarding portfolio allocations and lending, thus addressing subconscious biases, according to Zack Kass, a former OpenAI executive. However, misuse of AI could exacerbate these issues. AI could streamline routine tasks, allowing financial professionals to focus on more complex problems requiring human interaction, as noted by several experts at a Morningstar investor conference. While AI chatbots handle simple tasks, their role in managing intricate financial decisions remains limited, with firms cautiously implementing AI to avoid pitfalls. U.S. regulators, including (U.S. Department of the Treasury) Treasury Secretary Janet Yellen, emphasize the need for equitable AI use in finance, recognizing both its potential to lower costs and its significant risks. Despite AI’s advancements, human oversight remains crucial, especially for complex tasks, ensuring that AI complements rather than replaces human expertise. Read more here (Reuters #Reuters): https://lnkd.in/gjgqnnVp #AI #Finance #InvestmentManagement #Technology #Regulation #HumanOversight #Innovation #RiskManagement #ArtificialIntelligence #AINews #Financial

We're pleased to share an article from Joshua Brown discussing the significant impact of AI in the wealth management industry. A noteworthy highlight is the mention of Artificial Intelligence Risk, Inc. (AI Risk) and their innovative risk-focused AI solutions. The piece emphasizes the work of Alec Crawford and Joe McCann at AI Risk, who are advancing the field with their custom large language model, RIA GPT. This model is specifically designed for financial advisors, addressing critical compliance and cybersecurity concerns and ensuring a secure and efficient AI integration. We invite our network to explore the full article for more on how AI is transforming our industry. #WealthManagement #FinancialServices #AI #RIAs

OPINION OF THE WEEK: Future Of Financial Advice – More Co-Pilot Than Autopilot John Lin, Abdul Abdirahman and Zoey Tang argue that they expect #generativeai will take root across the #wealthadvisor #valuechain. How will AI affect advice to #wealthy people? This has to be one of the most dominant debates right now, given that #artificialintelligence – however one defines that term – has grabbed so much of the #tech and #strategy agenda in this industry. https://lnkd.in/duW6XvmA Tom Burroughes Amanda Cheesley Stephen Harris Philip Harris Rachel Fokes Andrew Deane Noreen Burroughes Cesareo FRSA Theodora Viney Julia Wakefield

AI is clearly reshaping how we invest and conduct business. My latest feature in @Nasdaq covers strategies for businesses to harness AI’s power responsibly and effectively. In the wider world, just like in insurance, we blend AI's power with human expertise, ensuring precision and agility. Read the full article here: https://lnkd.in/g72Xu9sz  #AI #Nasdaq #BusinessStrategy #Investing

Artificial intelligence will be the science behind the art of an advisor’s ongoing ability to build relationships and deepen trust with consumers and clients alike. Emotional and human intelligence will be just as important as AI and should serve alongside as non-negotiable strategic prongs to help ensure there are ethical, responsible and transparent guardrails and assessments in place. Wealth building still is personal and intimate; AI’s science will certainly aid advisors in taking away emotion from financial decision-making. It will be up to the advisor’s artful ability to work in lockstep with these tools while at once connect with their consumers and clients on a human level after those dispassionate decisions have been made. #ai #humancapital #trust #financialadvising