ESTATE PLANNING | INSURANCE | INVESTING | PORTFOLIO SPOTLIGHT | TECHNOLOGY & OPERATIONS | YOUR PRACTICE

Here ’ s how advisors are already diving into the new generation of generative artificial intelligence applications .

By Christopher Robbins

AI-backed tools proliferate in the wealth technology space , advisors are more likely to find that these tools are time-saving aids , not a threat to their existence .

But we should also demystify this technology . For one thing , most of what ’ s called artificial intelligence in 2023 isn ’ t particularly intelligent . For another , there is no single technology that deserves the name .

“ It ’ s really a pool of AI techs ,” says Ritik Malhotra , co-founder and CEO of Savvy Wealth , a digital platform for financial advisors . “ People conflate it with the idea of AI as if there ’ s just this one technology , like the cloud , but AI has many different variants . The most interesting to us is the latest to come into awareness . It ’ s what people call ‘ generative AI ’ or , more technical , large language models .”

In the wealth management space , the technology has been around awhile . AI-related technologies such as natural language processing and machine learning have been used to automatically analyze client documents or quickly surface recommendations for the next best actions by financial advisors . RiXtrema , an analytics platform for fiduciary advisors , has been using legacy AI applications like machine learning for more than eight years via its 401 ( k ) fiduciary optimizer — a platform that analyzes workplace defined contribution plan fund menus and lineups to find places where lower-cost funds or more appropriate ones should be swapped in .

But generative AI is a newer and even more impressive technology that ’ s freely and openly available to nearly any computer user . It includes programs , the most famous being ChatGPT , that not only read and analyze data written in human vernacular but also synthesize content in natural language or images based on that information , says Yon Perullo , RiXtrema ’ s chief executive officer . Today , ChatGPT can be freely accessed via a number of channels , with the easiest likely being Microsoft ’ s Bing search engine .

Some , if not most , advisors are already using this new technology , according to survey results released in June by Smart- Asset : Out of 100 advisors surveyed , 27 % said they were currently using ChatGPT or other generative AI products . Of these , 44 % said they were using the technology to write educational blog content , 28 % were using it to follow up on leads with prospects , and 28 % were using it for routine communications and scheduling .

Perullo says , “ Once something like ChatGPT comes out , where you can ask it all these questions , we began to ask how we could leverage something like that , that doesn ’ t know about plans or portfolios , in a way to make our clients ’ lives

JULY / AUGUST 2023 | FINANCIAL ADVISOR MAGAZINE | 25