By: Nicholas Bernard
Technology will aid innovation, improve business performance and reduce risk
Although the fundamental principles governing artificial intelligence (AI) have not changed considerably over the last decade, it has become much easier for businesses to understand and access AI-based technologies. The Wealth Management industry is no exception.
Big technology players like Amazon or Microsoft have all built AI capabilities into their platforms, which has brought the technology into the mainstream. The use of machine learning, for instance, has increased significantly.
In recent years, businesses across all sectors have invested a great deal into developing AI-based solutions. As more data becomes available, companies are modernising their operations and business models to improve their services to end users. For a multi-family office with global capability and focus, there are three main areas where the technology offers exciting possibilities.
One is operational efficiency. Business processes can often be improved by automating decision-making tasks using machine learning-based analysis. Document management is a good example. Using AI technology, software is able to reduce the administrative burden by reading a document and applying pattern recognition to predict its classification.
The second area where AI technology can help is risk mitigation. AI-enabled risk management allows firms to cross-reference both internal and external data sets to spot anomalies. It has the ability to identify and manage both known and unknown risks, automate the analysis and reduce administrative activities.
Lastly, AI can be deployed to enhance the client experience. Human relationships are a key part of our business – they always will be. In certain situations, though, AI-based solutions can help us anticipate and meet the needs of our clients without human intervention.
Ours is a high touch people business. Those firms that effectively use the latest AI-based technologies to augment their offering, however, will have the edge over their competitors in the coming years.
Nicholas Bernard is a Partner and Chief Technology Officer for the Stonehage Fleming Group.