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there will be significantly more negative emotions . Mediation allows the separating couple to work collaboratively before ultimately parting ways — if not amicably , then at least on mutual terms . Litigation , on the other hand — especially when children and custody are involved — often breeds unnecessary conflict and comes with additional pain . This negativity can extend to the financial professionals involved with both parties . Litigation frequently leaves one side angry with the outcome , and wealthy clients may transfer that ire onto their wealth advisors or accountants . Why ? Because financial professionals can be subpoenaed or called to testify in litigation , affecting the results . When this happens , advisors can lose not one but multiple clients , as they frequently represent the friends and family of the divorcing — and now angry — client .
I have a particularly memorable anecdote about an advisor caught up in a client ’ s divorce litigation . I was handling a divorce case for a wealthy client when the wife emailed the couple ’ s financial planner requesting a document . Rather than share it , the planner forwarded the email to the husband and asked , “ Should I ignore this request ?” The problem was , he accidentally forwarded his note to the wife ’ s fa- ther , who had an email address similar to her husband ’ s . The financial planner was hauled to court to explain the details . Needless to say , he lost a few clients .
When it comes to mediation versus litigation , it ’ s almost always better for all parties — the couple and their financial professionals — to pursue the former . Mediation means lower costs , more control , and more positive emotions , a trio that ’ s hard to argue with .
GUS DIMOPOULOS , ESQ . is managing partner of Dimopoulos Bruggemann P . C ., a matrimonial and family law firm based in New York City and Westchester County , N . Y ., that specializes in high-net-worth divorces . Visit dimolaw . com for more information .
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comes to personal connections . More than one-third of investor survey respondents would be uncomfortable with AI being used to make investment recommendations , and 44 % would object to AI-driven responses to their texts or emails . These preferences highlight an important truth : While the technology can be a valuable
part of the advisor ’ s tool kit , clients still crave the human touch for critical decisions and personalized communication .
Practical Tips For Using AI
As artificial intelligence continues to reshape the financial landscape , advisors need to strike the right balance between harnessing its benefits and maintaining the personalized service that clients value . Here are a few practical tips for blending innovation with human interaction :
1 . You should educate clients about the risks related to the technology : As AIfueled financial fraud becomes more sophisticated , it ’ s important for you to be proactive in educating clients . Regularly communicate with them about how to identify and avoid scams , offering resources that help them protect themselves . ( Janus Henderson has formed a partnership with Wayne State University and its Institute of Gerontology . The partnership ’ s website , OlderAdultNestEgg . com , discusses ideas such as how to survey older clients about their financial decisions and assess their vulnerability .)
It ’ s crucial that advisors personally handle direct communications to build trust and reassurance . Direct communication via in-person meetings and phone conversations is the most impactful .
2 . You can use artificial intelligence for your own administrative efficiency : By automating administrative tasks such as data entry , document processing and account maintenance , you can save time while reducing the risk of human error . This allows you to focus on higher-value activities , such as deepening client relationships and developing personalized investment strategies .
3 . You ’ ll want to maintain human control over investment decisions : While AI can analyze data and offer insights , the ultimate investment decisions should remain firmly in the hands of advisors . This ensures that clients receive a customized approach that reflects their unique needs , risk tolerance and long-term goals .
4 . You should keep your communications with clients direct and personal : Clients highly value human interaction , especially when it comes to discussing their financial future . This is why it ’ s crucial that advisors personally handle direct communications to build trust and reassurance . Direct communication via in-person meetings and phone conversations is the most impactful .
5 . Remember to stay ahead of the AI curve : As the technology evolves , so too will its applications — and risks . You should stay informed about the latest AI trends , both to enhance your practice and better educate your clients about the potential pitfalls .
In the artificial intelligence era , there is no question that you face a dual challenge : To embrace the technology ’ s benefits while also safeguarding your clients . On the one hand the tech will help you streamline your operations , but you should also offer ongoing education to clients about its benefits and pitfalls . In any case , it won ’ t replace direct and personal connections , and you ’ ll want to make sure that , even as you enhance your efficiency , you preserve the trust and personalized service that clients seek .
MATT SOMMER is head of the Specialist Consulting Group at Janus Henderson Investors .
58 | FINANCIAL ADVISOR MAGAZINE | NOVEMBER 2024 WWW . FA-MAG . COM