Artificial intelligence (AI) is transforming industries–including the wealth management industry. At the 2024 eMoney Summit, we delved into generative AI and what this new technology class means for the financial industry in a panel discussion with four financial services leaders.

Here are some highlights from the discussion where our panelists spoke on how financial professionals are interfacing with AI now, where you’ll see it next, what skills you need to stay competitive in the AI era, and the steps you can start taking today to maximize the potential of intelligent technologies.

AI is an Efficiency Driver

The potential for AI is tremendous. But how are financial professionals using it now, and how will it be used in the future? When we asked this question, John Helmen, Head of National Accounts at Allianz Life Insurance Company of North America, described AI as a “caddie to help support the business.” By leveraging AI in strategic ways, financial professionals will be able to work more efficiently and make their practices stronger.

Starting with the present, AI is already revolutionizing everyday work by taking on universal productivity tasks. Financial professionals today may be utilizing it to automate meeting notes, complete meeting follow-ups, draft content, or as a search engine. Looking ahead, the strategic integration of AI will further elevate the operational effectiveness of firms. It could be used to streamline workflows, back-office operations and compliance reviews, conduct data analysis, or identify potential gaps in financial plans.

Relationships Will Remain the Driving Force of the Industry

There is a human element to financial planning that consumers trust and want. As Maxwell Lane, CEO of Flourish, said in the panel discussion, “Money is more than just a math problem.” It’s also an emotional problem that is intertwined with our dreams, fears, ambitions, and values. Clients want to collaborate with a planner who can help them feel understood and navigate difficult emotional moments to stay on track. This makes client relationships and trust, two qualities that AI can’t replace, the most valuable things that financial planners can bring to the table.

What AI can do is give financial professionals more time to focus on building strong relationships with their clients. If AI is doing the mundane and day-to-day business tasks, that frees up planners to have more meaningful conversations with their clients. Instead of having less of the human element due to AI, you can have more of the human element due to AI.

AI Can Help Make High-quality Advice More Accessible

Technology lowers costs and broadens access. With generative AI, financial professionals can streamline their operations and reduce costs, which will enable them to serve clients with a lower net worth more profitably. This effectively expands their client base, which translates not only into more opportunities for growth, but also gives more Americans access to high-quality financial advice.

AI and Soft Skills: The Key to Future Success

Navigating the evolving landscape of the financial industry requires a balanced approach. For advisors who are looking to not just survive but thrive in the future, nurturing a blend of technical expertise and soft skills is key.

Embracing technology in your practice is essential, but it goes beyond mere adoption. As Erin Tyra, Director of RIA Annuity Distribution at Nationwide, said in the panel discussion, “If you’re going to incorporate tech, you have a responsibility to understand the tech you’re deploying.” This means delving into the fundamentals of AI, honing your prompting skills, and mastering the art of applying AI within your systems and processes.

At the same time, financial professionals need to lean into what technology can’t do. As Judy Lee, Vice President, Team Lead, Platform Consulting at Fidelity, said, “The human element is even more important.” Financial planning will remain deeply rooted in human connections, so soft skills will be more important than ever. Empathy in understanding your clients’ needs, adept communication in conveying complex financial insights, and active listening to truly comprehend your clients’ goals will set you apart in a sea of technological advancements.

Start by Incorporating AI into Your Life Today

Doing is the best teacher, so the best way to start learning more about AI is to familiarize yourself with the technology, test it out, and get comfortable. You could start by using it for low-risk tasks in your personal life, like meal planning, and grow from there. Taking online courses is also a good step for professionals who want to enhance their AI application skills.

As you further your knowledge and experience, you can find the right places to incorporate it into your professional life. When deciding to leverage AI in your firm, be deliberate and thoughtful in how you do so. Take the time to consider how it will work with the rest of your tech stack and how it will improve your practice and overall client experience.

Embrace the Opportunity that AI Brings

When it comes to leveraging AI in the financial industry, the potential is immense. AI is already streamlining everyday tasks and is poised to continue to drive efficiency and boost productivity for financial professionals in the future. By embracing the opportunity that AI brings to support your firm, you can free yourself up for the work that matters most–building relationships and having meaningful conversations with your clients.

To learn more about incorporating AI into your financial planning practice, check out our articles Prepare Now for AI Use in Financial Planning and 4 Promising AI Tools for Financial Advisor Marketing and Prospecting.

DISCLAIMER: The eMoney Advisor Blog is meant as an educational and informative resource for financial professionals and individuals alike. It is not meant to be, and should not be taken as financial, legal, tax or other professional advice. Those seeking professional advice may do so by consulting with a professional advisor. eMoney Advisor will not be liable for any actions you may take based on the content of this blog

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