John O’Connell, Founder and CEO of The Oasis Group, joined Julie Cooling, Founder and CEO of RIA Channel, to discuss innovative applications of artificial intelligence that are being deployed by financial advisory firms.
O’Connell sees an explosion of innovation in technology used in the wealth management space. The Oasis Group has viewed demo platforms of over 90 firms that are included in its AI Wealthtech Map. Beyond notetaking applications, O’Connell sees compelling offerings in AI copilots and assistants. AI will revolutionize document management.
Before adopting AI, O’Connell recommends that firms adopt an acceptable AI use policy, as 85% of employees may already be using the technology. The policy should cover technology, compliance, and business issues. The second recommendation is to have a plan on how AI will be used in the firm, whether it is limited to notetaking and document management, or used for broader applications.
O’Connell also states that humans need to remain in the loop, as the output from AI notetakers shouldn’t simply be loaded into a CRM, but should be proofread, as AI doesn’t necessarily understand what is being said, especially when it is sarcastic. Some client conversations may be so confidential and personal that they should not be archived. Advisors must remember that written notes may be subject to discovery in the case of litigation.
The Oasis Group, which provides consulting services to wealth management firms, won the Thought Leadership and Education Award from ThinkAdvisor last year. Before beginning discussion on how to select the right technology, a firm must first decide the role that technology will play in meeting the firm’s goals. Some firms may wish to accelerate growth by improving technology facing clients and advisors, while others may want to generate leads or streamline operations.
As a consultant, The Oasis Group can act as an outsourced chief technology officer (CTO) on a project basis to select technology vendors or on a longer-term basis. O’Connell can also refer technology firms to users who can demonstrate the use cases in their firms. Advisors need to be conversant in alternative investments to meet the higher returns demanded by younger investors, and crypto assets, which may become more popular due to the new crypto-friendly regulatory environment.
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