As of about a year ago, the world was introduced to ChatGPT, sparking curiosity about Artificial Intelligence (AI) and its potential. Since then, AI Tools has seen exponential growth, although distinguishing between real advancements and mere hype amidst the clamor surrounding AI can be challenging.
It’s crucial to recognize that we’re still in the early stages of AI development, with much yet to be discovered and refined. While we’re currently in Act 1 of the AI narrative, where the focus is primarily on exploring the technology, Act 2 will involve AI solving tangible human problems. Despite being in Act 1, there are already several AI tools available to assist financial advisors, particularly in content creation and productivity enhancement.
Here are three AI tools that have proven beneficial for financial advisors:
Customized AI Assistants
Many have experimented with ChatGPT, which offers a starting point for interacting with AI and understanding its potential applications. ChatGPT’s 4.0 service includes customized AI assistants, allowing users to train them on specific data, styles, preferences, etc. For instance, financial firms can upload their compliance manuals and train GPT assistants on compliance procedures, providing advisors with tailored compliance resources. It’s important to note that while ChatGPT is useful, it’s not secure for sensitive information.
AI-Generated Learning Courses
Educating clients on financial matters is a significant aspect of a financial advisor’s role, requiring substantial time and effort. Chat2course.com is an AI tool that simplifies this process by helping advisors create introductory courses on relevant topics like investing, insurance, and retirement. The tool offers extensive customization options, allowing advisors to specify content length and tone, thereby creating relevant educational materials for their target audience efficiently.
AI-Powered Internet Searches
Traditional internet searches, where users sift through lists of links, are becoming obsolete with the emergence of AI-assisted searching. Platforms like Perplexity.ai provide precise answers to queries by scouring the internet and presenting specific answers along with the sources. Microsoft’s Bing Copilot search engine offers a similar AI-driven search experience.
AI is revolutionizing knowledge-based industries, including finance, with the emergence of AI trading tools, crypto-focused robo-advisors, and AI-powered analytics. While these tools are still evolving, financial advisors should prioritize learning and incorporating them into their practices. Whether one views AI as a long-term transformation or a passing trend, its impact is undeniable. By leveraging AI tools, advisors can enhance efficiency and stay ahead in this new era of AI.
Regarding the adoption of Generative AI, experts recommend educating oneself and the team about its capabilities and limitations through courses offered by various online platforms and institutions. It’s crucial to refrain from including any sensitive data when experimenting with AI tools initially. Ensuring the accuracy of AI-generated information involves thorough fact-checking and cross-referencing with one’s expertise and credible sources. Integrating Generative AI into financial advisory practices requires strategic planning, aligning tools with business goals, regulatory compliance, and ethical considerations. Establishing a governance framework ensures responsible and effective use of AI, enhancing value for clients while upholding professional standards.
Additionally, it’s important to exercise caution when using AI trading bots, as highlighted by warnings from regulatory bodies such as the United States Commodity Futures Trading Commission. Meanwhile, the Securities and Futures Commission of Hong Kong has received the first spot bitcoin ETF application from Chinese asset management firm Harvest Fund Management, indicating ongoing developments at the intersection of AI and cryptocurrency.
