Can AI explain annuities better than a human advisor?

Is artificial intelligence a threat or a superpower? It’s the question just about everyone is asking in relation to their own job, but for many, including financial advisors, it’s likely to be a mixture of both.

Relax for now though, as a new product from Wealth2K aims to augment human advisors rather than replace them, and it could actually offer a simpler solution for advisors needing to explain annuities to prospects.  

“Annuities are difficult for many financial advisors to explain to consumers. Consequently, many people don’t take advantage of the unique benefits annuities provide,” said David Macchia, founder of Wealth2K and developer of AI Annuity Assistant.

AI Annuity Assistant uses high-end video and AI avatars or "digital humans" to explain how annuities work and the benefits that they bring to retirement income planning. The educational content is provided via a customized website branded for the individual advisor.

“Prospects who visit the financial advisor’s AI Annuity Assistant Learning Center are in for an engaging and informative experience, nothing like any other place to learn about annuities,” said Macchia, who explains that the human-like appearance of the AI avatars should provide a realistic experience.

“That doesn’t mean they replace financial advisors Their role is strictly to strengthen the human advisor, extend the advisor’s reach, and deliver maximum convenience to the annuity prospect,” he added.

KEY TARGET

While the product can be used to explain annuities to any prospect or client, Macchia says there's one audience that advisors may find it particular useful to engage with – baby boomer women.

“What we’ve seen in the financial advisory industry are wives outliving the husbands. Yet in many cases, it’s the husband who has the relationship with the financial planner. One study noted that in those cases, seven out of 10 spouses changed financial advisors within one year after their husband’s passing,” Macchia said. “The AI Annuity Assistant presents those baby boomers with a nonthreatening way to learn about retirement income planning. The Learning Center better prepares them to work with the financial advisor.”