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How AI will change the ways financial advisers manage your money

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How AI will change the ways financial advisers manage your money

Innovation in financial advice is sometimes met with this feeling of existential anxiety from financial advisers who worry that new technology will negatively affect their jobs — or at the very least, reduce their value. We’ve experienced this hype cycle repeatedly in financial advice, as fledgling technologies tend to create anxiety for advisers by automating or modifying legacy processes and services they historically managed.

While the concerns around job security are understandable, advisers can’t let that unease cloud the good that technology has brought to the advice industry — especially the ways it’s enhanced how advisers serve their clients. Technology has helped lower advisers’ costs and overhead by delivering efficiencies, including streamlining client onboarding and portfolio construction. And it has fundamentally improved their ability to deliver a more personalized experience for clients — cementing the durable value of coaching and guidance from human advisers. 

Fast forward to today, and the technology driving headlines is generative AI. This rapidly evolving technology has the promise and potential to change the ways we interact with nearly everything, including financial advice. As GenAI becomes prevalent in technology solutions across the industry, advisers would be well-served to consider its meaningful benefits and the accompanying risks, instead of viewing it as a fad or threat.  

Evaluating GenAI’s potential for advisers

There are many ways GenAI can provide value, but for advisers, most notable are the ways in which the technology can help streamline and augment administrative tasks. Here are three time-scaling benefits GenAI can provide advisers so they can prioritize more valuable tasks to help their clients reach their goals:

1. Content generation: GenAI can lend a hand with content generation for the routine communications that advisers often spend their time agonizing over — helping deliver personalized communications like standard client check-ins, meeting reminders and market updates.

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2. Knowledge management: Another of GenAI’s core use cases for advisers is in synthesizing and distilling a lot of information quickly. For example, GenAI can summarize comparisons between products, helping advisers make educated decisions more quickly for their clients. And rather than spending hours parsing through projections, lengthy annual reports and commentary to understand the latest market conditions or outlook, advisers can use GenAI to immediately summarize key takeaways and translate those insights into value for clients. GenAI can even help to distill prior client correspondence into more easily digestible notes and prompts as advisers prepare for upcoming meetings.   

3. Code generation: Just as GenAI can help develop and draft routine content, it can also generate web-page coding, helping advisers upload content on their websites for clients more quickly. And for larger advisory firms, GenAI-assisted code generation can help advisers and their software developers expedite custom technology solutions that assist with client onboarding and back-office tasks like data analysis, trading and operations. It can also support their ability to more seamlessly integrate internal systems for CRM, trading and portfolio management. 

Evolving technology has its risks

GenAI carries several risks if left unchecked, further reinforcing the importance of having a human adviser in the loop. While the time-scaling benefits of GenAI are attractive, advisers must have a framework in place to address risks, both to protect their practice and to safeguard private client information. 

One risk, for example, is jumping into a GenAI-focused partnership without conducting sufficient due diligence. We’ve witnessed explosive growth in GenAI technology, and new tools and platforms are popping up every day that may, at face value, seem like a good fit. It’s critical that advisers develop guidelines to vet potential partners and their technology, focusing on expertise, experience, client set and information-security measures. 

Another important risk advisers will need to guard against is any lack of awareness around the parameters of the GenAI platform they’re operating in. GenAI technology can be private, but some platforms are open to the public — like ChatGPT, for example — and advisers should consider oversight measures to ensure no confidential, proprietary or client information is shared. 

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Lastly, advisers should develop processes to spot risks related to hallucinations and biases. Hallucinations can occur when AI is prompted to provide a response to a question it hasn’t been trained to answer. Instead of not answering the question, AI can hallucinate and provide an incorrect response that sounds convincing. Additionally, GenAI tools can also suffer from racial and gender biases. For example, GenAI could recommend a lower investment-risk tolerance for women regardless of their actual appetite for risk. It is crucial that advisers understand the source data behind the AI they’re using, and have plans in place to check against unexpected hallucinations and biases that may perpetuate prejudices or stereotypes.  

With GenAI, advisers can more effectively manage their time — their most scarce and valuable asset — and devote more energy to creating personalized experiences and building deeper relationships with clients. Vanguard research shows that relationship-oriented services are a key differentiator in delivering value for clients, and that value increases as advisers establish emotional trust. Advisers who welcome technology and incorporate it judiciously have the potential to deliver better results for clients. 

Lauren Wilkinson is a principal at Vanguard and chief information officer for the firm’s Financial Advisor Services (FAS) division.

More: Saving too little? Spending too much? How to know if your money worries are rational (or not).

Also read: A rude awakening: Lack of financial literacy hurts the young. What about older people?

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Abu Dhabi seeks to build bridge between new media & finance – The Times of India

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Abu Dhabi seeks to build bridge between new media & finance – The Times of India

ABU DHABI: Instead of waiting for the future of media, Abu Dhabi is building it. The city played host this week to leading names from media and entertainment industries at the Bridge Summit, aptly named for seeking to position the emirate at the intersection between new-age media, innovation and investment.The three-day event at Abu Dhabi National Exhibition Centre from Dec 8 to 10 buzzed with energy, new ideas, collaborations and MoU deals as thousands of content creators, media brands, communicators, tech developers, AI innovators, investors and academics — who have been working in isolation — converged to brainstorm ideas, analyse future trends in the media industry and discuss ways to monetise them. How to get around the associated risks of privacy violation, fake news and narratives, defamatory content and online harassment were a natural corollary to the discussions.The idea of Bridge Summit originated at a lunch meeting in Abu Dhabi earlier this year between Sheikh Abdulla Bin Mohammed Bin Butti Al Hamed, chairman of UAE National Media Office, and Richard Attias, the Moroccan events producer associated with the Clinton Global Initiative, Nobel Laureates Conference and Davos Forum. The two discussed how UAE could give media, creators, tech innovators, social media outlets and investors a platform to connect and build the future of media. Eight months later, that dream turned into reality with Bridge Summit.Al Hamed, in his opening address, outlined Bridge Summit’s mission to unite media, technology, finance, and culture in building a more trusted, inclusive, and resilient information order.Speaking to TOI on the sidelines of the summit, Jamal Mohammed Obaid Al Kaabi, DG, UAE National Media Office and Bridge Alliance vice-chairman, said the forum seeks to secure a win-win situation for all, be it govts, media, content creators, social media platforms, gamers, investors and technology providers. “We are trying to help everyone — those who have a story to reach production, a company to reach a customer and govts to understand what’s happening in the market”.He added: “We believe that Bridge can be the brand that people will trust and look at in the future. We can connect it with media initiatives around the world. We believe that positive narrative can be supported through Bridge”.The global media and entertainment industry generated over $2.8 trillion last year, with gaming alone rivaling film and television at nearly $200 billion. Streaming continues to reshape consumption, while nearly 70% of content creators are already using AI tools.Rubbing shoulders at the summit were former heads of state, journalists, representatives of social media platforms, AI innovators, gaming developers, entrepreneurs and media influencers from across the globe; actors Priyanka Chopra Jonas and Idris Elba and footballer Gerard Pique lent it star power.Over three days of fireside chats, panel discussions, workshops and MoU signing, content creators and influencers took lessons from experts and peers on how to tell their stories better and hold their audience’s attention till the last frame.With artificial intelligence (AI) tools revolutionising the media space and content creation industry, engagements delved into how to maintain a judicious balance between human intelligence and artificial intelligence while tailoring content to suit users’ preferences and attention span.Sessions reflected on how the traditional print and TV journalism is being rapidly taken over by digital news content. Justin Smith, CEO of independent global news company Semafor, predicted that human journalist will continue to be relevant as the primary resource for original information, but must learn to harness the power of AI to add value. Richard Attias, who is on the Bridge board of directors, had a word of caution: “Human intelligence needs to always challenge artificial intelligence. We should not be losing the control of AI, which is like a robot”.According to UK journalist and broadcaster Emily Maitlis, agenda-based journalism is inevitable in the age of social media as one with a louder voice and reach, who can put out his version of the story more convincingly, tends to control the narrative. Adeline Hulin, chief of media and information literacy unit at Unesco, revealed that a global survey had found that 62% users don’t do any fact-checking before forwarding information online; most content creators are unaware of the international standards of freedom of expression; and just 20% users report hate speech. “Unesco has developed a global curriculum for media information literacy. We are working to integrate it with formal education and getting local partners to organise hackathons,” she said.Former deputy PM of UK Oliver Dowden advocated industry-led responsibility over sweeping regulation, saying there should be “clear guardrails” as creator content becomes the primary source of information for young audiences.Al Kaabi said Bridge Summit is just the beginning and “pop up” events will be held each coming quarter across America, Asia, Europe and Africa. “We want to hold a mini-Bridge in India. Also, there shall be more of Bollywood, not just Priyanka, at the next edition of the summit here,” he said.(The writer was in Abu Dhabi at the invitation of Bridge Alliance)

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Supreme Court case could reshape campaign finance — and open new money pathways into Georgia’s biggest races

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Supreme Court case could reshape campaign finance — and open new money pathways into Georgia’s biggest races

A major Supreme Court case could upend how money flows into federal elections, and Georgia may feel the first impact.

Republican Party committees are asking the Court to strike down a longstanding limit on how much political parties can coordinate their spending with candidates. If the justices side with them, experts say it would create new pathways for wealthy donors to steer massive checks into individual battleground races — including in Georgia, one of the country’s most competitive political states.

“It would open the floodgates for the biggest donors across the country to funnel money through the parties into specific Senate or House races,” said Eric Petry, counsel at the Brennan Center for Justice. “That problem would get even worse in places like Georgia.” 

The Supreme Court heard arguments this week.

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What’s at stake: millions in earmarked political spending

Under current federal rules, parties can assist their candidates but only up to capped limits designed to prevent corruption and donor influence.

If those caps disappear, Petry says a single donor could write a check for over $1 million and effectively tell a national party to direct it toward a specific candidate.

“That poses really significant corruption risks,” he said. 

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Critics warn that political parties could become conduits for wealthy funders seeking to maximize influence in targeted states, especially fast-changing battlegrounds like Georgia.

Georgia voter voting — I Voted sticker

“Georgia Voter” stickers at an early voting polling location for the 2020 presidential election in Atlanta, Georgia, on Monday, October 12, 2020.

Elijah Nouvelage/Bloomberg via Getty Images


Why Georgia could become ground zero

Georgia’s U.S. Senate races routinely draw national attention and tens of millions of dollars in outside spending. Metro Atlanta’s rapid political shifts — and fierce competition statewide — make the state an attractive target for national donors.

Already, Georgia saw historic spending in judicial elections last year, with outside groups pouring money into state Supreme Court contests. Weakening federal guardrails could accelerate that trend.

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“We already see big donors funneling tens or hundreds of millions into Super PACs,” Petry said. “If they can now funnel money through political parties — and have that money directly coordinate with candidates — that’s a very real concern.” 

Such a ruling could also intensify power struggles within Georgia politics. Secretary of State Brad Raffensperger recently criticized the state’s campaign laws, saying current limits give Lt. Gov. Burt Jones an advantage as both eye the 2026 governor’s race.

Though not weighing in on the Raffensperger dispute directly, Petry said candidates nationwide are “pushing the envelope” to find ways around weak or uneven finance rules, especially as federal regulators remain gridlocked. 

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A broader crisis of trust in elections

Public concern over the influence of money in politics has never been higher. Large bipartisan majorities — often 70% to 80% of Americans — say wealthy donors have too much sway over elected officials, according to polls cited in the Brennan Center analysis.

Petry said a sweeping deregulatory ruling from the Court could deepen that divide.

“If the biggest donors exert even more influence than they currently do, I would expect public confidence in the campaign finance system to continue to decrease,” he said. 

But paradoxically, he added, public frustration might also fuel a renewed push for reforms such as transparency rules or public financing. 

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Could Congress step in? Not anytime soon.

Even if the Court strikes down the limits, Petry says change isn’t likely to come quickly.

“Realistically, there’s not much chance of legislative action before the 2026 midterms,” he said. “Congress has shown that it doesn’t move quickly — if it moves at all — in this area.” 

He argues that the only long-term fix may be a constitutional amendment allowing lawmakers to fully regulate campaign spending — something the Brennan Center says has broad public support.

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A ruling that could rival Citizens United

If the justices side with the challengers, legal experts say it could become the most consequential campaign finance ruling since Citizens United, the 2010 decision that unleashed unlimited outside spending.

For Georgia — where elections are increasingly decided by razor-thin margins — the consequences could be immediate and far-reaching.

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Breaking down the arguments in Supreme Court campaign finance case

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Supreme Court case could reshape campaign finance — and open new money pathways into Georgia’s biggest races

The Supreme Court heard arguments on Tuesday in a campaign finance case that could undo more than two decades of precedent. The case was brought by a Republican challenge to a rule that limits the amount of money a political party can spend in coordination with a federal election candidate. CBS News’ Jan Crawford and Jessica Levinson explain more.

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