How to Use Artificial Intelligence Responsibly

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Imagine being able to free up your time for client meetings and strategic planning while having a tireless assistant handle routine tasks and even help analyze complex data to save you time and money. That's the potential of artificial intelligence (AI) when it comes to improving a wealth-management practice. AI tools are already making waves in the financial world and are becoming increasingly user-friendly. Yet, there are numerous pitfalls to consider when it comes to using AI in an RIA practice given regulatory and legal concerns.

Unfortunately, those RIAs who don’t use AI will likely find themselves falling behind their competitors who do. I will explain what AI is and how it’s impacting the financial services industry; some regulatory and legal concerns with respect to the use of AI; and how RIAs can take their first steps to utilizing AI in their practice responsibly.

What can AI do for your RIA practice?

AI can enhance almost every aspect of an RIA’s practice, including performing tasks related to portfolio management, client onboarding and servicing, operations, and marketing.

When it comes to portfolio management, AI can process significant amounts of historical and research data to identify investments suitable for s clients, monitor investment portfolios for undesirable risks, and rebalance portfolios based on desired target allocations.

For clients, AI tools can enhance and streamline the client experience by facilitating onboarding, gathering and verifying information from clients, crafting targeted client communications, facilitating client education on financial topics, streamlining reporting for clients to help them better understand their financial situation, and helping clients track their progress towards achieving their financial goals.