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September 25, 2024 at 02:16 PM
We’re barely two years since ChatGPT was released to the public and there are already several artificial intelligence tools for wealth management in the market quickly gaining traction, with some attracting millions of dollars in funding.
What these developments should tell our industry is that “digital transformation” as a phenomenon comprises different aspects — be it a new technology, a more streamlined way of working, a new client demand — but regardless, once adoption begins, it spreads fast.
The question for advisory firms is, can you keep pace?
The answer is not only yes, you can — it is also a lot simpler than you think. To get started, focus on straightforward yet high-impact changes that will let you run your business more efficiently and deliver consistent levels of client service, while helping you grow faster, too.
I want to assure you that AI isn’t going to replace advisors any more than robo-advisors did. What will eat advisor jobs, though, is the reluctance of firms to embrace constant and neverending improvement — the so-called CANI principle.
Embracing the Transformation
There are multiple benefits to your firm in embracing AI and the broader digital transformation beyond just staving off disruptive competition. Let’s say you’ve swapped out a paper-heavy process with a digital-first automated approach, such as an online onboarding process. Instead of hours of paperwork and needing to come in person for signing ceremonies, your prospects can open and fund an account within minutes.
That’s not only a tremendous amount of time saved for your business. Your advisors, administrative employees and those new clients are all happier because they had a convenient, simple experience instead of slogging through a dated process. Your operations team has less headaches to contend with, too, because the process was centered in one place and integrated with the custodian, so all the information was sent according to their set standards and virtually error-free. And as the firm principal, you are happier because your firm can serve more clients as a result.
