I’m a Finance Professional: How I Use AI to Grow Client Wealth
AI — these two little letters have had a massive impact on the ways we do business.
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From research to data analytics, customer service to content development, entrepreneurs around the world are exploring the power of artificial intelligence to transform their industries. Wealth management professionals are no exception. As the stewards of their clients’ journeys to maximize and grow their wealth, these experts need to be aware of all the onramps to get them to their goals much faster, whether it’s finding the safest investments or undertaking estate planning.
Daniel Gorlovetsky, Founder and CEO of TLVTech, has been using AI as an integral part of products that help clients generate wealth even before resources like GPT dominated the headlines. Always curious about the potential to push technology further and faster, Gorlovetsky and his team wanted to see how tapping into AI’s ability to consolidate information from multiple sources could help build clients’ wealth.
“We recognized early on that the advent of AI would revolutionize financial advising, prompting us to harness sophisticated algorithms and machine learning techniques,” he said.
Using AI allowed them to leverage information across social media, news and other digital resources to determine where other people were making effective investments. The rise of Chat GPT allowed them to further expedite the very research-based aspects of wealth management.
ChatGPT can swiftly summarize complicated documents like agreements, contracts and financial statements to empower investors in their decision-making. When traditional investors assess public stocks, they’re often called upon to review comprehensive documents like financial performance and quarterly updates.
“Many people can’t digest all that information, sometimes 400 pages’ worth, to make determinations about whether they should invest,” said Gorlovetsky.
With ChatGPT synthesizing a broad range of information into more understandable terms, investors and advisors alike feel better prepared to navigate the market. In addition to giving clients clearer insights, Gorlovetsky explained that his team has been “leveraging AI to identify unique market opportunities, create tailored investment strategies and optimize portfolios with a precision that human analysis could not achieve alone.” His team is far from the only expert crew relying on AI for added analytical prowess.
According to Dennis Shirshikov, Head of Growth at Awning.com (a platform dedicated to real estate investors), AI has been essential in analyzing vast datasets and identifying trends and investment opportunities. The company uses AI algorithms to evaluate real estate markets and predict areas with potential high returns. Not only does AI help give the Awning.com team a lay of the current real estate investment landscape, it’s also allowed them to better understand future risks in the market.
“AI also plays a pivotal role in risk management. By simulating various market scenarios, AI helps us anticipate potential risks and devise strategies to mitigate them,” said Shirshikov. “This proactive approach ensures our clients’ portfolios are robust and resilient, even in volatile markets.”
While AI has become a valuable resource in gathering insights and creating forecasts for clients, for some financial professionals, it’s also enhancing the speed and productivity of their client service. Elizabeth Miller, a finance expert with interests in financial planning, retirement planning and investment, as well as the founder of Bike Adventurous, was initially eager to explore the capabilities of extracting valuable information from large data sets to aid in decision-making. Motivated by the potential to improve predictive analytics, Miller also found that AI streamlined more repetitive tasks, specifically automating and optimizing time-consuming processes like expense and income tracking, chatbots, fraud detection, credit scoring and underwriting, as well as compliance monitoring — allowing her to devote more facetime and energy to her clients.
However, like most new technologies, AI carries certain concerns among the general public. Miller admits that some of her clients were worried about receiving financial insights based on AI.
“As with any transformative technology, questions arose about reliability, bias, and interpretability,” she said. “Ensuring that AI models are accurate, fair, and transparent became a priority. Collaborating with experts and conducting rigorous testing helped address these concerns.”
To give herself and her clients peace of mind, she fact checks the accuracy of the results via a combination of validating data sources, testing the AI models and monitoring their performance, auditing outcomes gleaned from AI and collaborating with experts. She checks in with data scientists, engineers and auditors alike to make sure that the results she’s getting from AI are high-quality and reliable.
Likewise, Gorlovetsky and his team have developed robust validation processes that weigh AI-generated insights against market outcomes and other economic indicators — all in the name of accuracy. Though the Awning.com team trains its AI models on top-tier datasets and regularly updates its models, Shirshikov explains that the human touch is also key to the company’s validation process.
“Our team of financial experts routinely reviews AI-generated insights, adding a layer of human judgment and expertise. This synergy between AI and human expertise ensures we provide advice that is not only data-driven but also practical and grounded in real-world financial wisdom.” He recalls a time when a group of reviewers assessed an AI-originated suggestion to invest in a less popular real estate market by factoring in local economic policies and upcoming infrastructure developments — only to confirm the AI-based recommendation and guide a client into a highly profitable investment.
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Experts are finding that clients are excited by the speed, creativity, and accuracy of results generated by AI–quickly transcending any reservations about using artificial intelligence or machine learning in wealth management. As tech innovators and entrepreneurs alike find ways of adding greater versatility and usefulness to AI technologies, wealth management professionals are seeing a bold new fast-lane open up toward savvier investments.
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This article originally appeared on GOBankingRates.com: I’m a Finance Professional: How I Use AI to Grow Client Wealth
