For best-in-class AI solutions to actually earn that mapping, Sindhu Joseph warns that tools can’t be used as “set and forget”.
Joseph Co-founder and CEO of CogniCorA developer of an artificial intelligence-powered business automation platform based in California reminded those who attended her session on the second day of the inaugural Future Proof Festival of the massive failure that has occurred. ty Microsoft.
In the spring of 2016, an AI-enabled chatbot was named as an acronym for “Thinking of You”, Released and withdrawn within a day of operation. Its machine learning capabilities have caused racist, misogynistic and anti-Semitic statements to be spewed across Twitter, in an astonishing public display of rubbish and rubbish.
He said that simply “letting the machine run” without proper human guidance or care is a big predicament
Joseph has a PhD in Artificial Intelligence and is Inventor of six technology-related patents.
“There are a lot of apps where that works really well. Even in very specific apps, let’s say, bot tips, if you’re looking for any tech stock I need to buy…For these kinds of things you can look at the patterns,” She said. “But if you ask a bot advisor, ‘what should I invest in’ or ‘how should I plan financially’, that is not a question that a bot advisor can answer based on your (specific) circumstances.
“But if you build AI properly, it can be used as a supportive tool for achieving efficiencies at multiple levels.”
in future proofThe power of artificial intelligence to support and grow the wealth management industry was the focus of a conversation between Joseph and Andrew Altvist, president of the New York-based RIA. Altfest Personal Wealth Management and founder FP AlphaAn AI-Driven Planning Solution for Financial Advisors
The panel, moderated by Axios reporter Ryan Lawler, was a reminder that the most powerful part of any AI solution is the people using it.
The future of the data-driven workplace. A recent research report from financial planningParent company Arizent has found that wealth managers are embracing artificial intelligence and machine learning at a much higher rate than other financial services industries. a Survey of 500 financial advisors In the US and Canada earlier this year research conducted by the consulting firm Accenture revealed great enthusiasm for the technology.
About 83% of consultants interviewed by Accenture, a consulting firm, said they believe AI will have a direct, measurable, and consistent impact on the client-adviser relationship within the next 18 months. The same percentage of advisors also said they believe AI can achieve a level of sophisticated advice and planning that will eventually have them competing with an algorithm for clients within the next 18 months.
But Altfest believes that human experience can withstand the algorithm now and in the future. So instead of preparing to wage war on the machines, advisors need to figure out the right way to embrace their powerful still-developing ally.
“Humans are not going anywhere, and we will become more valuable to our customers,” he said. “I think it’s because we’re really good at using our judgment. We’re good at creativity. We’re good at the personal side of things. And I don’t see machines replacing any of those things anytime soon.”
Altfest emphasized the need for a symbiotic relationship between humans and technology for the modern advisor to succeed. Simply put, consultants cannot juggle all of their responsibilities to the client without a little help.
He gave the example of working with a client who was diagnosed with early Alzheimer’s disease and the disruption it has caused in his life.
“He has to know who’s going to pay the bills. Who’s going to take over Medicare. What his estate plan should look like. How to pay for long-term care. What are the chances of a tax cut,” Altvist said.
“On the other hand, you have a young professional who is just starting out with a portfolio that wants sustainable investments, wants to find opportunities to lower taxes and wants to manage risks in their lives,” he added. “How do you serve all of these needs simultaneously? We can’t do it alone without technology.”
The good news, Altfest said, is that powerful data can properly leverage AI.
“The financial services industry has done a fantastic job digitizing the information in our various platforms, and now the role of AI and technology is to put that into action, and for us as consultants we can judge it,” he said. “Find out how to apply them. Find out where the recommendations have limitations. And use our creativity to do better.”
Joseph believes that AI will be the new user experience in terms of creating next-level customer care.
But it is up to the advisors to present this interaction in a way that works.
“We call this ease of conversation that meets the power of automation,” Joseph said, adding that unless wealth managers create a seamless experience that keeps them ahead of the curve, even the most sophisticated technology will fall short.
She added that the “holy grail” of AI is the ability to understand human intentions in their contextual sense.
“That’s when AI really achieved something,” she said. “If you understand intent, you can have many automations built into it to create scale and efficiency. But the understanding and intent part is the hardest. And that’s where AI has to play the most important role.”
The Future Proof, organized by Advisor Circle and Ritholtz Wealth Management, drew more than 2,200 people to Huntington Beach, California for an event billed as the first “wealth management festival”. Officials said the guest list includes more than 1,000 financial advisors, 220 speakers and nearly 100 sponsors. financial planning sponsor of this event.