Talk about artificial intelligence or AI, has become so common as to be almost unavoidable. AI-related breakthroughs like the development of advanced “deep learning” techniques have made formerly inconceivable results possible and even common.
Systems powered by AI are now capable of categorizing images, transcribing speech, and many other useful activities. It is even possible to have AI help manage your investments in ways that will contribute to the health and growth of almost any portfolio.
Attempts at creating helpful, practical AI is nothing new, but progress was very slow until recently. There was a notable boom in AI research in the 1980s, a period when programmer-designed “expert systems” seemed to harbor the most potential. None of those generously funded programs ever really panned out, though, leading to a subsequent slump in AI development activity. It was the increasing availability of massively parallel processors that gave rise to today’s ongoing AI boom.
source: fintechfutures.com
What sets modern AI systems apart from their predecessors is how they are allowed to develop without human intervention. Most leading AI technologies consist of virtual neural networks that undergo huge amounts of automated training.
This approach produces AI that can accomplish things that would have been far out of reach of yesterday’s expert systems and the like. At the same time, the actual inner workings of the most powerful modern AI networks are essentially impossible for mere humans to comprehend.
While modern AI is powerful, it is not a general-purpose substitute for human intelligence. People remain far more adaptable and generally perspicacious than any AI which has been trained to excel in a particular, well-defined area.
Even so, appropriately designed and selected AI has been shown to be useful for wealth management, or at least certain related activities. Some of the areas where AI is proving to be a valuable wealth management tool are:
- Personalization.
source: cnn. com
- Professional wealth managers often struggle to balance the need to provide personalized advice against the requirement that they stay at the cutting edge of the field, in general. AI can be used to help identify and categorize significant events in the lives of clients to make it clear that some personal intervention is needed. Some wealth managers now use AI to scan and characterize publicly available social network activity, for instance, to highlight financially significant developments like marriages, births, divorces, and deaths.
- Compliance.
source: entrepreneur.com
- Investors of means are often subject to dozens or even hundreds of regulatory requirements. Wealth managers too often fall down the rabbit hole of trying to maximize returns in the face of myriad such technical constraints. AI frequently proves to be better at that type of brute-force work, as it can tirelessly evaluate the many associated options. Even if an AI’s proposed solution will always need to be vetted by an experienced human, the time saved can be significant.
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- Communication.
source: yodlee.com
- Wealth managers tend to be busy people, and their clients are rarely less so. AI is increasingly being used to collect and communicate wealth management insights and advice in ways that suit both parties particularly well. Improving the efficiency and reliability of communication channels can ultimately mean becoming able to produce more impressive returns for clients.
Although AI is not a panacea, it is proving to be a powerful tool for wealth managers who use it responsibly and strategically. The ability of today’s cutting-edge AI to excel at certain highly targeted tasks can easily benefit wealth managers and their clients. and that will be helping you to enhance your business growth using artificial intelligence.
