Artificial intelligence offers advisers help with top two client questions
Fidelity Institutional vice president Andrew Brzezinski describes the role AI will play in the future of the advice business.
This interview was recorded at our ‘Future of our Business’ conference.
Transcript:
“Artificial Intelligence fundamentally is about computers performing tasks ordinarily done by humans. And, when it comes down to it, what we are talking about here is deriving insights from data.
There are some great industry examples of this right now, like natural language processing, machine vision, outlier detection, and recommendation systems. Maybe just a few words about each of these.
Natural Language Processing, some people call that NLP, is about taking text or voice as inputs and the machine really understanding what is being asked.
Machine Vision, it’s about isolating and identifying features and objects like videos and images. And these days computers are getting to the point where they can actually do this better than humans.
Outlier Detection is about looking at a data set and saying, what are the patterns that are strange in there? What are the edge cases? Tell me what’s not normal here.
And Recommendation Systems are really important. It’s about taking some kind of an input or question and coming back with a best suggestion, a best recommendation, a best answer to that question.
Together, capabilities like these which have been emerging over the last couple of years are really generating a ton of excitement about the opportunities in artificial intelligence.
I like to think about it this way. Financial advisors probably have two really big questions that they ask when they think about their clients. Who do I need to talk to and what should I talk to them about? And there’s a great opportunity for artificial intelligence to play a strong role in helping to answer those questions. And it’s back to those concepts of NLP, outlier detection, and recommendation systems.
So think about finding the natural segments within your end investor universe. Think about coming up with estimates of clients or prospects eventual lifetime value. Think about predicting attrition, right, you might see signs inside the data that say ‘this person is about to leave’. Think about being able to come up with a prediction that there is a life event coming up.
Like a package of capabilities like these would really help financial advisors to play that much stronger, to be more efficient with their time, OK. And eventually maybe to scale their books of business.
So, when it comes down to it, artificial intelligence is really going to help advisers to drive their business goals.
