Ten AI Tools for Advisors
Artificial intelligence (AI) has the potential to transform the advice profession, offering valuable insights and tools that will help you be more productive and serve your clients better.
How do you go from the theoretical to the practical? What AI tools can you use today that will streamline and improve your processes?
In my firm’s digital-marketing practice, we use some AI tools below (items 7-10) to create content and related marketing materials. We don’t use the others (items 1-6) because they aren’t relevant to our business, but they may be helpful in your practice.
1. Personalized client outreach
Financial advisors can use AI to improve client outreach efforts.
AI-powered chatbots like ChatGPT can enhance productivity and outreach for firms with small or nonexistent marketing departments. Chatbots can be deployed on websites, social media, or messaging platforms to handle common customer queries, schedule appointments, and provide personalized responses.
AI can analyze vast amounts of data to improve the targeting and personalization of marketing efforts. Financial advisors can better understand client needs and tailor their marketing messages by analyzing client behavior and preferences. This can lead to higher engagement and conversion rates.
Some popular AI-driven marketing platforms include:
2. Portfolio optimization
AI-powered portfolio optimization tools can help you create an optimal blend of assets. Platforms like SigFig claim to “use advanced technology to provide investors with diversified portfolios tailored to their unique needs and goals.”
3. Risk management
AI can be a powerful ally in managing risk.
You can find a list of risk management software here.
4. ESG Investing
AI can be programmed to support financial advisors in the ESG investing process by analyzing ESG data and identifying sustainable investment opportunities.
AI can help create ESG portfolios that align with their clients' values and risk tolerance.
AI can also help financial advisors track changes in ESG trends, enabling them to make better-informed investment decisions.
Platforms like Truvalue Labs and Datamaran provide insights into a company's ESG performance, allowing advisors to make informed decisions and better serve clients interested in responsible investing.
5. Chatbots and Virtual Assistants
Chatbots and virtual assistants can automate tasks and provide better client support.
Chatbots can be programmed to answer common customer queries and to guide users through financial tasks like transferring funds, booking appointments with advisors, and tracking their investments in real time. Financial advisors can also use chatbots to offer personalized financial advice to customers based on the information that the customer provides.
Virtual assistants like Cleo and Clinc can help clients stay on top of their finances by providing budgeting and savings tips, reminders about upcoming bills or payments, and personalized investment advice. These virtual assistants can also help customers monitor their credit scores, track their spending habits, and set financial goals for the future.
6. Sentiment Analysis
If you believe sentiment analysis helps make informed investment decisions, AI-driven sentiment analysis tools, like RavenPack or Accern, can process vast amounts of data from news articles, social media, and other sources to gauge the overall sentiment towards a particular asset, sector, or market.
Liner.ai can be added to your browser as an extension. It provides pithy answers to your questions instead of requiring you to browse many pages.
Here’s an example.
I typed this question into my Chrome browser: How much should I talk when meeting with a prospect?
There were over 325 million results.
On the right-hand side of the page, there was this extract from the response from Liner:
The ideal talk-to-listen ratio when meeting with a prospect is around 35-45% of the time talking and 55-65% listening.
Liner then listed three resources I could check to verify its response.
Here’s the difference:
A Google search gives you the resources to find the answer to any question.
Liner.ai gives you the answer.
When writing content, I can often edit the answer provided by Liner after checking it for accuracy and then hyperlink to one of its sources.
As the name implies, Copy.ai generates copy.
I asked it to do the following: Write copy for a website describing the investing philosophy of an investment advisor who only recommends index funds.
Here’s an unedited extract it generated in seconds:
Our investment philosophy is based on the principle that passive investing is the most effective way to build wealth over time.
We recommend index funds because they provide broad-based exposure to the market, which helps minimize risk and maximize returns. Unlike actively managed funds, which attempt to beat the market through stock picking and frequent trading, index funds simply track the performance of a specific market index, such as the S&P 500 or the Russell 2000.
By investing in index funds, our clients can benefit from the long-term growth potential of the stock market without the added costs and risks of active management. Index funds typically have lower fees than actively managed funds, which means more of your money goes toward your investments and less toward management expenses.
Chat GPT will also generate content, so why use another program?
Copy.ai is focused on writing marketing copy. It may produce a higher-quality copy when used for that purpose, but I haven’t used it enough to be sure that’s true.
Brearly.ai can also be added as an extension to Chrome. I use it to summarize articles.
Here’s an example:
Using my search about talk ratios, Brearly summarized the lead article as follows:
This article discusses the importance of balancing talking and listening during a sales call.
- The ideal talk-to-listen ratio is 43:57.
- Sales reps should speak 20-25% of the time they are in front of a prospect.
- Top sales professionals typically discuss pricing late in the call.
It has another remarkable feature. You can highlight a sentence in any search result, and it will generate an article on that subject.
I searched for, “Why most people don’t use financial advisors.”
I highlighted this sentence from a search result:
According to a survey by CNBC, 99% of Americans don’t use a financial advisor for various common reasons such as lack of trust, transparency, or they’re under the impression that it may just cost them too much.
I asked Brearly to write an article from this sentence. Here’s an extract from the output:
Despite these common misconceptions, having a financial advisor can be an invaluable asset. Financial advisors can help individuals make smarter investments, plan for retirement, and maximize the potential of their financial future. By creating a personalized plan tailored to each individual’s specific needs, they can help manage risk while maximizing returns. A financial advisor can also provide unbiased advice and help prevent individuals from making costly mistakes as they attempt to navigate the complex world of personal finance.
With some minor edits, I could incorporate that into a blog.
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Infographics are a compelling way to tell a story and present complex information in a visually appealing and easy-to-understand manner.
Infographics have been shown to improve learning and retention. Infographics can also enhance user experience, increase engagement, drive traffic to your site, improve ROI, and increase conversion rates.
Always double-check the AI-generated content, as it may contain errors or inaccuracies. Remember that it’s only current through 2021.
AI isn’t just the future, although the prospects for what it will achieve are awe-inspiring.
It’s the present.
Dan trains executives and employees in the lessons based on the research in his latest book, Ask: How to Relate to Anyone. His online course, Ask: Increase Your Sales. Deepen Your Relationships is currently available. His digital marketing firm makes extensive use of artificial intelligence to help advisors increase their SEO rankings and improve their marketing.