High-value AI Tactics in Wealth Management

It’s important to understand the technologies that fall under the umbrella of Artificial Intelligence including Natural Language Processing, Facial Recognition, Predictive and Generative.  As with all emerging technologies, different portions are at different levels of maturity and their relative efficacy is marketed as improving existing interactions. When we research ways AI can improve business capabilities or value chain, we unlock transformational value. Ultimately AI allows us to ask new questions and gain new insights into areas of business that weren’t feasibly visible before. 

When we review AI’s transformational value potential in Wealth Management one area to consider is:

  • Cross and Upsell
      • Based on Investment Objectives, Percent of Assets Managed, Available Product Shelf, Tax Exposure Changes, Age, and Digital Touchpoints, what adjustments in their financial plan may be well received.
      • Change recommendations can be provided to the Advisor for review and preparation by the Advisors team, and then incorporated into your annual review process.  
      • New holdings or activities (like RMD’s or establishment of a Trust) can be nurtured by adding the client into email campaigns or inviting them to upcoming events focused on education.
  • AI Tactics
    • AI’s predictive capabilities can provide advanced statistical predictions to determine the highest probability Client Recommendations.  
    • Tracking of marketing campaigns and website activity can be used by AI’s predictive capabilities to inform on Client’s research. A Client that has been recommended to view their Advisors video on relevant market trends or product education and doesn’t is less likely to agree to the associated portfolio adjustments at the next meeting.  
    • Generative AI can be used for initial drafts of email, call scripting or video scripts for product education.  

A quick aside on the Regulatory and Compliance impact. The Regulatory & Compliance environment will continue to lag technology development. Thus far, the EU is ahead of the US in this space. The bulk of AI regulations center on fully automating financial product pricing, access, or recommendations.  The use case offered here isn’t  currently regulated and is not likely to be in the future.

Getting started on an AI journey is different from a traditional technology project.  Xede can assist with aligning AI tactics to business value, data assessment, ethical and regulatory concerns in addition to implementation and ongoing management.

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