Financial Advisors look for any advantage they can find and get comfortable with when it comes to managing money for clients. Financial advisors may find that next ‘advantage’ in the form of Artificial Intelligence (AI). Should financial advisor accept AI as the next tool they can get behind and support? Can they afford not to?
Morgan Stanley Wealth Management recently announced the results from their quarterly Individual Investor PULSE survey. Fred Barstein, Contributing Editor for WealthManagement.com recently identified the Pulse Survey as one of the most important news items of the week! The results provide insight on how individual investors view Artificial Intelligence (AI) and the potential uses of AI into the future. (The survey was conducted from April 3 to April 20 of 2023 among an online US sample of 924 self-directed investors, investors who fully delegate investment account management to financial professionals, and investors who utilize both management strategies.)
A majority of those who participated in the survey believe that AI is a game changer for investors. However, it is not as though people believe human guidance can be replaced by AI.
It may come as no surprise that enthusiasm for the use of AI in the investment process is most highly accepted among younger investors. Jeff McMillan, head of Analytics, Data and Innovation at Morgan Stanley Wealth Management stated, “While AI is clearly groundbreaking, and we are just scratching the surface of its potential impact within financial services, this data aligns with an insight we’ve known for some time.”
Mr. McMillan also stated “… AI should be viewed not as a replacement of human guidance, but as a powerful tool to help turbocharge a Financial Advisor’s practice management and client interaction capabilities.”
Morgan Stanley is a global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. Tune in to this week’s episode of Real Talk with Fred Barstein to catch this story and other interesting topics.
