ChatGPT and AI seem to be everywhere these days, but what do they really mean for asset management and financial advisors? Does AI arrive as just a theme, or can it really have an immediate impact on financial advisors’ work?
On Wednesday, VettaFi’s Dave Nadig hosted a webcast on AI titled “Beyond Chat: How AI is Impacting Real World Investing Right Now.” Nadig, VettaFi’s financial futurist, invited ROBO Global senior research analyst Zeno Mercer and ReSolve Asset Management CIO Adam Butler to join him.
First of all, investors and advisors should recognize the varied ways in which AI will impact economic growth. Factors such as low penetration and increasing M&A position AI catalyze some serious growth. Areas set to benefit include AI infrastructure like semiconductors and cloud providers, as well as AI apps and services in e-commerce, consulting, healthcare, and more.
“What we’re seeing right now is that each technical wave that’s coming through is leveling up the game,” Mercer said.
Investors looking for pure-play options on AI without having to own names like Nvidia (NVDA) or Microsoft (MSFT) do have options. Responding to a question from Nadig on the topic, Mercer underlined ROBO Global’s scoring process about AI. The firm considers factors like market leadership, revenue purity, and technological leadership to assess AI-related names.
Mercer added that advisors keep an eye out for firms that may also be acquisition targets for MSFT rivals. Examples include firms like Pure Storage and Arista, which are working to speed up AI chatbots like ChatGPT.
Advisors Polled on ChatGPT and AI
Advisors polled on the webcast shared their interest in AI use for back-office work, basic financial planning, and handling other more tedious parts of an advisor’s day. Perhaps the most salient question for advisors, however, is how they can use chatbots like ChatGPT right now. According to Butler, priming ChatGPT to “act like an expert” in a specific field will help it to provide the best responses.
“It’s really helpful if you ask ChatGPT to think step by step,” Butler said. “Another really great way to get better results is to ask it to act as an expert in something. If you’re trying to do some work in the financial field, you might say, ‘Act as an expert in financial planning and investments.’”
Butler shared an example from his own life in which he and his wife worked to design a handbook for swim team parents. Initially, ChatGPT struggled when asked to “design a handbook to introduce new swim families to expectations of new swimmers.” Once asked to produce a comprehensive list in the role of a swim coach, however, it significantly improved.
“The best way to think about this is as a force multiplier of your current expertise,” Butler said.
For example, Butler added, his firm has been using ChatGPT to help develop agendas for podcasts. By asking ChatGPT to familiarize itself with a guest, Butler can quickly see and hone a draft.
AI has only hit the “DOS” era, for those who recall that operating system, Mercer said. That leaves plenty of upside for future AI development. Investors can consider AI ETFs from ROBO Global, including the ROBO Global Artificial Intelligence ETF (THNQ).
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