Recently, the buzzword artificial intelligence (AI) is on everyone鈥檚 minds, not just in the tech world but across multiple industries, including financial services. Given the growing interest and concerns surrounding AI, it would be beneficial to provide some insights into the topic and its impact on the financial services industry.
AI traces back to ancient philosophers and mathematicians, but its modern interpretation emerged in the mid-20th century. Today, AI is a branch of computer science that focuses on giving machines or computer-controlled robots the ability to execute intelligent tasks. While some applications are getting headlines today, the concept and foundational technology have a rich development history.
A brief chronology of AI highlights the progression from 1950s chess-playing computer programs to adopting machine learning for tasks such as filtering spam and enhancing search engine capabilities in the 2000s.1
By the 2010s, programmers had integrated AI into voice assistants, self-driving By the 2010s, programmers had integrated AI into voice assistants, self-driving cars, and healthcare diagnostics. More recently, AI applications have expanded to almost every industry, from weather modeling to improving remote working and learning.2
However, what does AI鈥檚 proliferation mean for our future, specifically for your interactions with me as your financial professional?
One thing is clear鈥擜I鈥檚 capacity to quickly analyze large data sets far exceeds our human capacities. It promises to revolutionize several industries, but the notion that AI-infused machines may surpass human abilities, thus 鈥渢aking over the world,鈥 remains largely a matter of science fiction.
AI鈥檚 adoption in financial services has helped firms automate certain back-office functions, enhancing efficiency and providing more time for financial professionals to spend with clients like you. Your key financial decisions are seldom straightforward and often don鈥檛 have a simple right or wrong answer. They require a nuanced approach informed by your unique circumstances, including risk tolerance, time horizon, goals, and, of course, emotional factors.
Financial professionals bridge the gap between cold data and human emotions. We know how to balance financial data with common sense and empathy. While AI can aid in data-driven technical aspects of financial services, it lacks the human touch, which remains paramount.
Please remember that the most effective guidance requires trust, effective communication, realistic expectations, and a comprehensive understanding of each client鈥檚 financial situation. In our professional relationship, we prioritize your needs over technological advances.
As we navigate the AI wave, we may see it as the next technology that will drastically change our lives, similar to personal computers, the internet, and cell phones. It certainly has the potential to be one of the 21st century鈥檚 most transformative technologies. However, its emergence only highlights the importance of the human element in decision-making processes and the unique, personalized approach a financial professional like myself can provide.
If you have questions about AI and its implications on your financial journey or other concerns, please don鈥檛 hesitate to reach out. It鈥檚 my goal to stay ahead of these trends and provide you with the most up-to-date information about industry trends.
1. G2.com, May 25, 2021. 鈥淎 Complete History of Artificial Intelligence.鈥
2. MITTechologyReview.com, March 3, 2023
This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm.