Artificial intelligence (AI) is everywhere these days. Many uses make sense and are beneficial. When it comes to creative pursuits, AI helps people like me seem like artists. In areas driven by computer algorithms, AI can manage the automation.
However, in areas where human experience and intuition make a difference, like financial services, it tends to fail. A lot has been written about AI hallucinations that present misleading or even false information—a problem for attorneys as well.
It can be hard to know if you’re conversing with a human or a computer anymore. Imagine Facebook, but instead of your family and friends, your feed is full of AI-generated content. Without the human element, it would be boring and without purpose.
AI in Financial Services
In the financial services industry, I have seen a lot of advertising touting the use of AI to help clients manage their financial health. There is a push for using AI as a tool for trade automation, customer contact, and even decision-making. I’m not in favor of these uses except for trade automation; that’s an appropriate job for computer algorithms.
Computers do what they are programmed to do. This means that program trading often chases short-term momentum shifts in market volatility rather than analyzing economic fundamentals. Where some AI-driven trading might trigger ill-advised sell orders in a volatile market, old fashioned, human handholding may allow cooler heads to avoid fear-induced trading.
Customer Contact
When it comes to financial services, customer contact should be between human beings. There should be an element of empathy and understanding in human contact that AI can fake but not truly accomplish. The old saying “garbage in, garbage out” applies. Lacking human experience, it can’t read between the lines in understanding the human condition. Faking empathy… it’s empty.
Past performance does not guarantee future results. We don’t invest in what has been or even what is. We are investing for what will be. There’s a bit of psychology mixed with math rooted in history that informs an intuition built on experience. The most important parts of my job involve human interaction and judgement; AI can only emulate that.
Actual Intelligence
As artificial intelligence becomes more prevalent in society, my commitment to my clients is that they can expect “actual intelligence” from me. When you call me, you will talk to me. When I send a newsletter or email—or write an article, you will read conclusions from my own experience and perspective. Financial planners relying on actual intelligence make recommendations after analyzing available options and choosing the path most appropriate for a given situation. Our analysis is based on our personal familiarity with each client.
I will get to know you and you will get to know me. This knowledge provides protection for your assets as our personal relationship becomes the basis for account security—you aren’t calling a disinterested call center—and it is the foundation of our mutual trust.
Using actual versus artificial intelligence allows a financial planner like me to use my training and experience in our meetings to develop strategies to meet individual needs.
Artificial intelligence will never replace actual intelligence in serving our clients. Actual intelligence allows us to understand the joy of marriages, births, anniversaries, and accomplishments… and the sorrow of loss—the human condition. It’s that simple: treating clients as we would want to be treated.
