March 18, 2020
The advent of artificial intelligence not only means an easier life for humans and a potentially safer one, but the technology can be implemented in many different sectors. When it comes to private wealth management, AI is being used in several ways, from financial advice to lead generation.
Should financial companies be placing all their eggs in one basket with AI, or should they have a hybrid company that utilizes humans as well? AI is still in its infancy, but even so, it will be able to impact on the business of finance management companies.
One of the biggest advantages of AI in the finance sector is the ability to scour mass amounts of documents. With all the news shows, articles, and stock ratings, on any given day, it’s impossible for humans to consume the content in a timely manner. That’s where AI comes into play.
An AI bot may be used to ‘read’ websites and video content in order to gather data. This raw information can then be consolidated and filtered, giving humans an overview of multiple data sources.
AI bots have another use when it comes to scouring mass amounts of data, which is profiling. They can profile all the information in order to figure out what is best for the client at hand, and trends in the general market.
This is especially beneficial for high worth clients wanting high-risk investments. Private wealth management specialists would, therefore, be able to guide these clients in the right direction for their portfolios.
Given all of the figures and jargon that go into investing, it’s not always an easy sector to understand for the average user. The internet is also full of advice from different sources, some of which is useful and some not. The unpredictability of stock markets also adds to the confusion around investing.
Clients would be able to speak to an AI chatbot in their own time and at their own pace before meeting with a wealth management advisor. This would allow the client to ask any and all questions about investing, being shown simulations of what may happen to their money, as well as what is right for them.
The AI bots could essentially take all of the grunt work out for private wealth management advisors while allowing them to form strong relationships with clients in order to keep them happy and their money safe.
Predicting markets is no easy task. This is equally true for AI systems as well, though they’re able to give better predictions from the mass amounts of raw data and analytics. That information can also be processed at a faster rate than what a human can do while spitting out visual charts and graphs.
Humans should still be involved in the private wealth management sector. There’s also an element of ‘gut feeling’ when it comes to investing and the handling of money, which analytics can’t predict and vice versa.
While AI may be predicted to replace a third of Britain’s jobs by 2030, it may not be fully sustainable without human intervention as well.
For more information on AI chatbots, have a look at our article on how Clickatell Touch is putting AI to work to change the customer service game. The piece covers Touch’s integration into existing support solutions, commerce, and solution-driven support among other things.