The human touch in wealth management brings empathy, understanding and personalized guidance that cannot be replicated by artificial intelligence (AI).
AI is embraced as a way to simplify and expedite daily tasks. However, AI is unlikely to replace professional services roles, like wealth management, in the foreseeable future. The relationship between financial advisors and clients is driven by human connection and understanding to help meet clients’ goals.
Trust is key
Trust is the foundation of any successful relationship, including the one between financial advisors and their clients. While AI may process information at lightning speeds, it lacks the ability to understand what you are not saying and your true risk tolerance. Financial advisors hone their skills and abilities to form connections and instill confidence in their clients, all while navigating the ever-changing landscape of the financial industry.
Empathy and trust are beneficial aspects of the financial advisor – client relationship as market ups and downs and life’s financial uncertainties often create emotional responses. When that happens, a conversation with your financial advisor can help alleviate worry and even prevent making an emotional decision that may not align with your wealth planning goals.
How AI can help financial advisors
Instead of replacing financial advising with AI, the RBC Wealth Management focus is on understanding how financial advisors may embrace the technology to usher in a new era of efficiency and data-driven decision-making.
Technology can help financial advisors further customize their advice to help clients reach their financial goals, augmenting AI tools with human discernment and connectedness.
Meeting halfway
Critics of AI express concern about its potential for harm, including depersonalization of the client– financial advisor relationship. Ideally, the collaboration of human and machine-learning can help clients reach their financial goals and feel peace of mind.
When combined with human expertise, AI can help deliver the desired outcomes for clients. Rather than replacing financial advisors, AI should be viewed as a tool to expedite data processing and other tasks more efficiently, thereby adding time for nurturing the personal relationship. Talk to your financial advisors today about how they are using AI.