Artificial intelligence (AI) is everywhere and is reshaping industries left and right. For financial services, it’s a mix of excitement and caution, especially as this traditionally cautious field begins to wade into the high-tech waters. So, what does AI do for wealth management? IFA Magazine Senior Financial Reporter Jenny Hunter spoke with the CEO of purple streetStu Breyer, to learn how AI can help financial advisors work smarter, maintain client trust, and stay ahead in a rapidly changing world.
Start with the problem, then find the AI
The biggest mistake people make? Jumping straight to the coolest AI tool without a clear goal. Breyer suggests taking a step back. “What is the thing you are trying to solve?” » he said. Existing AI tools for finance offer tons of specific solutions: some focus on analyzing customer data, others on automating reports. But rather than tailoring the business to a tool, Breyer urges advisors to “adapt AI to how your business works.”
Breyer’s advice applies to many industries where technology can sometimes be a square peg in a round hole. He emphasizes that when tools are fit for the job, not the other way around, advisors and businesses will see AI as an ally rather than a complication.
Data security: who has the keys?
One of the biggest obstacles to AI in finance is data privacy. This sector handles sensitive customer information. It is therefore essential to know where the data goes and who has access to it. “You should always own your data,” says Breyer, emphasizing that advisors need to be clear on this point when choosing AI partners. malowstreet goes so far as to manage everything securely in the United Kingdom and to anonymize the data before analysis. “We want unbiased models,” he explains, “not a model who knows it’s a man or a woman or a young or old person, just the key facts.”
The message is simple: choose a partner who values data security as much as you do and keep control firmly in your hands. For Mallowstreet, this focus on security has made a big difference in customer trust.
Freeing advisors’ attention
The magic of AI really lies in its ability to handle busy work, giving advisors more time to focus on clients. Using tools like SOFI, Mallowstreet’s AI solution, advisors can hand off tasks like taking meeting notes or sorting documents to the machine, allowing them to engage face-to-face. face to face with customers.
“When you are absolutely present, actively listening and paying attention, without taking notes,” says Breyer, “you can grasp the things that really matter.” He believes this shift allows counselors to read body language, pick up on nonverbal cues and get a better sense of the client’s true needs, which ultimately deepens the counselor-client relationship.
Adoption is growing rapidly
As AI invades fields like marketing and technology, financial services continues to test the waters. Breyer points out that while AI tools like ChatGPT have become household names, their adoption in the financial sector remains cautious. He says this is largely due to regulation and the need to ensure these tools work securely with customer data. But that is starting to change.
As more professionals see their colleagues using AI tools like SOFI, Breyer says it’s happening quickly. “One person will start using SOFI…then the next person will email us later in the week asking, ‘Can I have a SOFI account too?’ because they see this immediate benefit.
AI won’t replace advisors, it will give them superpowers
If you’re worried about AI taking over, Breyer has some good news. AI is not here to replace advisors but to boost what they can do. “What’s waiting for your job is the person who knows how to use AI,” Breyer jokes, noting that people who can leverage AI to work faster and smarter will be a real game-changer.
malowstreet itself uses AI for everything from coding and writing documents to managing meetings and creating summaries. “These are things that save you ten, twenty or even thirty minutes at a time,” he says. Add all these time savings up and, within an organization, they make a huge difference. His recommendation? Look for small ways to introduce AI and let the benefits accumulate over time.
Build trust with low-stakes AI
For advisors who are a little hesitant, Breyer suggests starting with something fun, like asking ChatGPT for a weekend itinerary. “Start playing, approach it from a curiosity point of view,” he advises. This allows users to familiarize themselves with AI before embarking on business-critical uses.
Once they are ready, they can try low-risk applications within their business, gradually introducing AI as a useful companion rather than a disruptor. According to Breyer, every little improvement will add up, and before long, advisors will be well on their way to a smoother, more efficient way of working.
The future of AI in financial services
Looking ahead, Breyer predicts a sharp increase in AI adoption over the next year, with financial firms linking their internal processes using these tools. “To me, it’s going to be the tools that come up that look holistically at all businesses and say, ‘Here are the ten things that you’ve identified that this tool can help you with.’ » The focus will be on using AI to solve specific business needs while maintaining the firm’s unique style and client focus.
Conclusion
As AI becomes more prevalent in financial services, its role is not to replace the personal touch but to help advisors focus more on it. By choosing the right tools, protecting data and gradually integrating AI, advisors can save time and improve the customer experience. And for those ready to get creative with AI, the benefits are likely just beginning.
To learn more about malowstreet’s SOFI tool, you can visit the website here: https://sofiai.com/landing.