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Artificial intelligence is quickly becoming a valuable asset for financial advisors, helping them improve their practice by streamlining tasks, enhancing client communication, and providing deeper insights for their practice and work with clients. But the industry is far from universal adoption.
Although some firms are incorporating AI into their management of portfolios as well as their direct correspondence and meetings with clients, others are still in the exploratory phase, sorting out whether the technology can benefit their practice and help them achieve their goals. This piece aims to bring clarity to those who remain skeptical or are still understanding how AI can enhance the work of advisors, what it can do for clients and how it can enhance the client-advisor relationship.
Here are six key areas where AI can make a transformative impact on financial advisory practice.
1. Content Creation and Marketing – AI tools can generate first drafts of emails, newsletters, and blog posts, maintaining the advisor’s voice while saving time. While advisors may worry about sounding robotic, it is always easier to make edits to existing content than to start on a blank page. The ability to quickly create personalized content helps advisors keep clients engaged. It also allows for efficient client communication and targeted messaging based on individual interests. The more personalized information you can feed these tools, the better content it will produce.
2. Notes and CRM Integration – AI-powered tools can automatically record meetings, summarize key takeaways, and update CRMs with relevant details, reducing manual data entry. This ensures that important client information, like financial goals or family details, is captured accurately. AI can also generate follow-up tasks so that nothing is overlooked, keeping accurate records and reducing administrative burden. While compliance safeguards may be a concern, these tools can be used in ways that prioritize data protection.
3. Analytics Assistants – AI offers valuable support in portfolio analysis, aggregating research and flagging insights that may require attention, such as an excessive cash weighting. With AI’s support, advisors gain a clearer view of portfolio performance and can make data-driven recommendations, ultimately helping build trust and transparency with clients.
4. Client Segmentation and Lead Optimization – AI helps advisors optimize client engagement by automating segmentation, which is important to develop highly personalized engagement strategies such as webinars, whitepapers, or events. AI can help determine what topics and concerns are top of mind for prospective and current clients, making it easier to catch their attention and attract involvement.
AI can also analyze a list of leads and provide timely alerts for potential needs. For example, if a couple is expecting a new baby, it is time for the advisor to bring up the importance of college savings. Additionally, tools like customer support chatbots can quickly respond to basic client inquiries so that clients always have access to information, while advisors can concentrate on complex, high-value tasks. Utilizing these features can add to existing systems that aim to grow a book of business, such as client referrals.
5. Document Extraction – Manual data entry from client documents is a time-consuming task. AI, such as YourStake, can automate document extraction, pulling relevant information from PDFs or forms and populating systems with accurate data in minutes. Advisors can save time and reduce errors, improving the overall efficiency of the onboarding process.
6. Compliance Filtering – AI can assist with compliance by automating content reviews, ensuring that all communications adhere to regulatory standards. Whether it’s marketing materials or portfolio recommendations, AI helps advisors stay compliant by flagging potential issues before they arise. This streamlines the compliance process, reduces human error, and allows advisors to focus on providing advice.
While AI is already streamlining document extraction, portfolio analysis, and other tasks, its potential applications continue to grow. Future developments include more advanced CRM integrations and client communication tools, further simplifying workflows and deepening client relationships. AI is no longer a futuristic concept but a practical tool that’s reshaping how financial advisors operate. But before you implement any AI solutions, make sure to have a plan in place for how your firm uses them. If you’re using a generative AI tool such as ChatGPT, it’s imperative that you have a process in place for not sharing sensitive information.
While AI is no doubt a game changer for the RIA industry, it’s not a silver bullet. Don’t go at it alone. Find tech partners who can provide solutions that simplify and streamline workflows, delivering results for advisors and clients alike, with AI potentially playing a big role in the process.
Gabe Rissman is the president and co-founder of YourStake.
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Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.