Are AI Tools Worth the Cost?
Readers of my AI articles have asked me for practical examples of how it can positively impact their practice.
They want to know the following:
- What problems can AI solve?
- What applications can solve those problems?
- Is AI cost effective?
Let’s address those issues.
Data-driven decision-making platforms
Advisors can use these platforms to gain insights into clients and better serve them. These programs have broad application, so what follows is only a summary description of their capabilities.
Symanto is an example of a platform that uses natural language processing and machine learning to analyze text data and derive insights. Other data-driven decision-making platforms include DataRobot, Google Cloud AI, and TensorFlow, which are machine learning platforms offering various AI services.
While these platforms aren’t designed for financial advisors, they can be adapted to serve your needs.
To effectively use data-driven programs, you must gather information about your demographic and your clients’ financial goals, risk tolerance, investment preferences, time horizons, and other personal information.
Here’s how using these platforms can help you.
In addition to identifying a more targeted demographic, AI can produce content that resonates with prospects most likely to be attracted it your firm.
It can automate various marketing tasks, such as social media posting, email blasts, and other forms of digital communication, making it easier for advisors to reach their target audience more effectively and efficiently.
Here are some applications to consider:
- Hootsuite: A social-media management tool that allows you to schedule posts, track analytics, and manage your social media accounts in one place.
- MailChimp: An email marketing tool that lets you create and send newsletters, automated email campaigns, and targeted messaging.
- Salesforce Marketing Cloud: A marketing-automation platform to deliver personalized customer experience based on their behavior, preferences, and demographics.
- HubSpot: An inbound-marketing platform that includes email marketing, social media management, and marketing automation.
Client segmentation helps you tailor your marketing strategies to specific customer demographics, to increase customer loyalty and satisfaction.
These platforms analyze the emotional tone and sentiment in client communications, helping you understand how your clients feel about their financial situation or specific investment options. This information helps you address concerns more effectively.
This software identifies patterns and trends in financial behavior, like spending habits, investment choices, and responsiveness to market changes.
DataRobot can analyze historical investment data. By training predictive models on this data, you can gain insight into your client's risk tolerance and investment preferences, allowing for more personalized portfolio recommendations.
Behavioral analysis helps you understand your client's behaviors, emotions, and biases, facilitating a relationship of trust.
By analyzing a client’s investment history and preferences, these platforms help financial advisors determine each client's risk tolerance, so you can create an appropriate investment portfolio that aligns with their goals and comfort level.
Data-driven platforms can identify factors that influence client satisfaction and retention, like the frequency and quality of communication or the performance of their investments.
For example, an AI-powered sentiment-analysis tool could analyze the frequency and quality of communication between you and your clients. The tool will identify patterns in the language used by clients and determine whether they are satisfied with the level of communication.
Similarly, AI can analyze the performance of a client’s investments, using data from various sources to provide insights into market trends and identify potential opportunities for improvement. This information will inform investment strategies and communicate progress to clients.
By using AI to analyze client feedback, you will identify areas of improvement and take proactive steps to address client concerns. This increases client satisfaction and retention, ultimately leading to more business success.
Additional AI productivity hacks
- Microsoft has integrated Chat GPT into the Microsoft Office Suite. You can read about this integration here.
- Microsoft has a new AI-powered Bing and Edge browser. You can see enhanced search results and create content. According to the AI experts I’ve interviewed who will be working with our digital marketing firm on our expanded AI offering, the experience is outstanding.
- Have you tried Notion? It is a productivity and organization tool that allows users to create databases and notes in a collaborative and customizable environment. You can use Notion to manage your finances and help clients manage theirs.
Notion allows one to visualize spending patterns and trends to help make informed financial decisions. You can also create a workflow to automate recurring tasks and streamline processes.
You can also use Notion for research and analysis purposes. The tool offers features like databases, tables, and formulas, which can be used to keep track of financial data, create investment portfolios, and analyze stocks.
Notion allows sharing your workspace with your clients, allowing for transparency and ease of collaboration.
Notion offers a collection of financial templates designed to create a financial overview, manage expenses, and set financial goals.
What does it cost to implement AI?
The proliferation of off-the-shelf AI options means most issues faced by investment advisors can be resolved with little customization, which reduces costs.
There’s an important caveat: According to the AI experts I mentioned previously, AI isn’t the right solution for every problem. For some issues, it will be more cost-effective to wait until there are better solutions available.
A good AI consultant can save you time and money by identifying areas where they can add value and discourage you from embracing AI where it doesn’t make sense.
Do you need AI?
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AI can make most advisors more productive by streamlining processes and facilitating marketing. It is particularly useful in creating content. However, smaller advisors are unlikely to benefit from the more sophisticated AI technology available.
AI is changing so rapidly that it’s hard to keep up. My firm uses these sites to stay current:
Dan trains executives and employees in the lessons based on the research in his latest book, Ask: How to Relate to Anyone. His digital marketing firm makes extensive use of artificial intelligence to help advisors increase their SEO rankings and improve their marketing and helps advisors integrate AI into their practices.