Analysing AI’s Impact on Financial Advice, Part 1

Most articles and reports about AI focus on its generative capabilities, which are admittedly more exciting to discuss when it comes to creating content and handling tasks traditionally thought strictly as ‘human’. However, AI has been around for years in various algorithms and solutions used by advisors to help them be more efficient, responsive, and comprehensive with their roles and customers.

#Automation, Accuracy and Efficiency

Like many other industries, financial advisers are overworked, so a significant portion of the industry are automating various back-end functions and customer-related tasks like portfolio management. AI can automate strategies that align with modern portfolio theory, selecting investments to maximise overall returns within an acceptable level of risk, establishing optimised passive indexed portfolios.

The technology can also alert investors when allocations fall outside parameters. AI can then continuously scan and rebalance portfolios with minimal user input – whether that be a financial advisor or an independent trader.