We Aren’t Ready for AI
Recently, I had the privilege of attending the CFA Society Toronto event titled "The Future of Wealth Management," where the discussions about AI’s role in the investment industry sparked a profound realization: our sector is significantly underestimating the seismic shifts that the AI revolution is poised to bring - and already bringing. Unlike the general discourse within AI circles, the investment community seems to lag a few years behind, with some still skeptical about AI's potential to operate independently of human oversight.
I had expected to learn more about AIs influence on the wealth management sector, but instead found discussions that already seemed years old. The difference in the levels of discussion between our industry and AI insiders is striking. For instance, one speaker at the event referenced older AI errors as evidence that AI would always require human direction, without any apparent understand of the powers of even the most basic current technology. This perspective starkly contrasts with views from AI leaders like Sam Altman, who said that Artificial General Intelligence (AGI) could replace 95% of what marketing agencies currently do. Sam was interviewed for the book “Our AI Journey”, co-written by Adam Brotman and Andy Sack (and being released in a subscription model):
“It will mean that 95% of what marketers use agencies, strategists, and creative professionals for today will easily, nearly instantly and at almost no cost be handled by the AI — and the AI will likely be able to test the creative against real or synthetic customer focus groups for predicting results and optimizing. Again, all free, instant, and nearly perfect. Images, videos, campaign ideas? No problem.”
I align more with Altman’s vision, having immersed myself in various Generative AI (GenAI) tools and witnessed their capabilities expand rapidly in a very short period of time. The acceleration is real, and it’s reshaping what we understand as possible in marketing and beyond.
AI Revolution vs. Historical Paradigm Shifts
This AI revolution is unlike any technological leap we’ve seen, including the advent of the printing press or the industrial revolution, which are always widely cited as proof that technology will create more jobs. Those shifts replaced manual processes and broadened information access, but AI’s potential extends into fundamentally redesigning intellectual labor. It's not just about doing things faster or more efficiently; it's about reimagining and automating the cognitive processes that underpin decision-making in fields like marketing and client relationship management.
It really is different this time.
Implications for Small and Medium-Sized Investment Firms
For small and medium-sized firms, often constrained by budget limits and lacking large marketing teams or a CMO, the implications of AI are profoundly democratizing, and that is exciting.
AI technologies, particularly in marketing, level the playing field, allowing these firms to perform tasks at the efficiency and scale comparable to global powerhouses. From sophisticated client data analysis to personalized content creation and strategy formulation, AI tools can empower these firms to enhance brand awareness, improve share-of-voice, and optimize client interactions without the overheads associated with large teams.
Leveraging AI in Financial Services Marketing
At this very moment there are accessible tools for financial industry SMEs to leverage AI in ways that will outperform the legacy and Franken-systems of the larger players across all areas of your business:
Brand Awareness and Client Acquisition: AI can analyze vast datasets to identify market trends and client preferences, enabling firms to tailor their offerings more precisely and engage clients through personalized marketing campaigns.
Operational Efficiency: From automating client communications to generating reports, AI can handle repetitive tasks, freeing up human resources to focus on strategy and client relationships.
Advanced Analytics: AI’s ability to predict market trends and model investment scenarios can provide firms with a competitive edge in financial planning and risk management.
Resources for Staying Ahead in AI
For professionals eager to stay at the cutting edge of AI developments, particularly in the context of financial services, I recommend the following resources:
OpenAI Blog: Stay updated with the latest advancements in AI research and practical applications directly from one of the leaders in AI development.
AI Now Institute at NYU: This resource offers insights into the social implications of AI, an essential aspect for anyone looking to understand the broader impacts of AI integration.
Marketing AI Institute: A media, event, and online education company making AI approachable and accessible to marketing and business leaders around the world. Great weekly podcast as well.
I am an avid listener to the Marketing AI Podcast. Every single week there seems to be a new advancement to discuss. The pace of development is truly staggering.
Take Action Now
To reference back to Sam Altman’s prediction, 95% of this article was written by AI. I shared my personal experiences and other important elements with ChatGPT 4, like I would with any ghostwriter, and the work was done, nearly perfectly aligned with its purpose, in seconds.
The investment industry must wake up to the transformative power of AI. The shift is inevitable, and early adopters have the most to gain. As we integrate these powerful tools into our operations, we must remain vigilant about their ethical deployment and the need for oversight to ensure they augment our human capabilities without crossing into problematic territories. But make no mistake: AI is set to redefine what's possible in financial services marketing, bringing unprecedented opportunities for growth and innovation.
If your firm is sitting on the sidelines, book a meeting with me and let’s explore how you can get your organization up-to-speed and well-positioned to benefit from the AI revolution.
