The financial world is no stranger to disruption.  The latest wave comes not from rogue traders or flash crashes, but from silicon and code.  Artificial intelligence (AI) is rapidly transforming many industries, including the world of finance.  But what might this mean for consumers seeking financial guidance?

AI in Action | A List of Potential AI Use Cases in the Financial Services Industry

• Smarter Banking: Imagine personalized banking services at your fingertips. AI-powered chatbots can answer questions, manage accounts, and even offer tailored customer solutions, all without waiting on hold.
• Frictionless Finance: No more paperwork purgatory. AI can streamline tasks like loan applications, mortgage approvals, and insurance claims, making financial processes faster and more efficient.
• Investing for Everyone: Robo-advisors powered by AI algorithms can help new investors analyze their financial goals and risk tolerance. This allows investing to be more accessible to people who might not have meaningful assets yet.
• Fraud Fighters: AI algorithms can sift through vast amounts of data to detect fraudulent activity in real time, protecting people from scams and identity theft. This can lead to safer online transactions and more secure financial systems.

Possible Impact on the Wealth Management Industry

Many have said that the goal of AI is not to replace humans but to improve their capabilities and assist them with becoming more efficient.  That said, the AI impact on wealth managers is still up in the air.

If used properly, AI should help to generate a better client experience by allowing advisors to retrieve information more efficiently. For example, AI may help financial advisors stay up to date with the latest law changes and investment solutions for clients.  It can also help them understand the financial climate better by doing more sophisticated analyses to compare the current market climate to past climates.

Ultimately, we believe that the future lies in collaboration, where human expertise and judgment guide AI and AI’s analytical power amplifies human decision-making.  This partnership can lead to more efficient, inclusive, and personalized experiences for everyone.  With more tools becoming available for financial advisors, such as software to help analyze taxes, rebalance portfolios, and analyze insurance and estate plans, this is helping advisors do even more for their clients than ever before.

The AI revolution is just beginning, and its impact on our everyday lives will continue to unfold.  While challenges remain, the potential for positive change is immense.  By embracing AI responsibly and ensuring its ethical and equitable implementation, advisors can help ensure they are delivering the best possible experience for their clients.

Conclusion

Your team at Strategic Wealth Partners has embraced change over the years.  While it’s still too early to tell how exactly we will leverage AI, we are excited to learn and explore any resource that will create value for our clients.  There will certainly be more to come on this exciting topic.

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This article contains general information that is not suitable for everyone. The information contained herein should not be constructed as personalized investment advice. Reading or utilizing this information does not create an advisory relationship. An advisory relationship can be established only after the following two events have been completed (1) our thorough review with you of all the relevant facts pertaining to a potential engagement; and (2) the execution of a Client Advisory Agreement. There is no guarantee that the views and opinions expressed in this article will come to pass. Investing in the stock market involves gains and losses and may not be suitable for all investors. Information presented herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security.

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