Money Managers Can Leverage AI In These “Key Three” Areas


Financial advisors are used to digital transformation by now. So why wait on artificial intelligence?

The financial advisory community seems to be rallying around artificial technology, with nine out of 10 money managers having a “positive” view of AI in 2023, according to a recent study by wealth tech money management company F2 Strategies.

That doesn’t mean advisors have a firm grasp of the technology.

“For the financial services industry, AI comes with more unknowns than knowns,” the study reported. “When asked to rate their knowledge of AI on a scale of one to 10, 62% of wealth management firms rated themselves a five or less.”

Three Tips for AI Success

To get up to speed on AI and maximize its potential, F2 Strategies offers three tips for wealth management firms seeking to deploy AI.

Know what works and start incrementally. It’s okay to look around at other money management firms who’ve already established an AI strategy and see what’s working for them.

“While many implementations of AI-like technology are currently concentrated around predictive analytics, wealth management firms are more interested in the long-term benefits workflow automation and generative, F2 Strategy noted.

That’s exactly why the wealth technology firm advises financial advisory companies to “start small,” with AI. “Understand your potential use cases and assess where AI can help your firm streamline functions to realize cost or time-saving efficiencies,” FN said.

Appoint an AI “leader”. Having direction at the top can make artificial intelligence campaigns go more smoothly.

“To increase their knowledge and use of emerging technology, firms should appoint an internal team member to be an “AI champion,” F2 Strategy said. “That’s someone who can study the solutions that exist, the regulations that limit the applications of AI, and promote solutions appropriate for the business.”

Align with a technology partner. In the F2 survey, 8% of the wealth management firms in F2 Strategy’s survey planned to develop their own internal firm AI capabilities, while 18% planned to rely entirely on vendors.

“The remaining 74% intended to take a collaborative approach, developing some resources internally while leveraging third-party vendors elsewhere,” the company noted.

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