Technology

The potential for artificial intelligence to aid the delivery of financial advice is being recognised globally, and should lead to a “redefinition” of the sector according to commentators.

As the world turns towards critical minerals like lithium to power electric vehicles, alternative access to investment in these sectors will become crucial pieces of the supply chain puzzle.

Financial advice practices will find it harder to grow and scale their businesses in an increasingly tech-driven world if they aren’t making smart technology decisions, says Finura’s Peter Worn.

There are now an average of 120 clients per adviser in Australia – a number not seen since 2013. While the declining adviser cohort is a factor, so is the improved experience of advisers with technology according to researcher Investment Trends.

ChatGPT presents an inflection point in the quantitative investment journey, writes Michael Kollo, one that doesn’t need the presence of machine learning scientists or investment in costly data acquisition.

On what was set up as a discussion around the proposals put forward by the Quality of Advice Review, the topic repeatedly shifted to the frustration providers felt at not being able to work with ASIC to bring compliant solutions to market.

A desire to flaunt ubiquitous wealth on social media is putting moneyed families at risk, according to family office representatives, with extortion and kidnapping “a legitimate concern”.

Investment platform provider Praemium explains that while there is an “increasingly positive” attitude towards financial advice, the needs of HNW investors are taking on a whole new identity.

If you’re going to offer services that the incumbents already do well, Steinhardt tells Inside Adviser, you need to do a pretty good job at it yourself. And if there are any flaws in your system, they need to be addressed.

Large language models like ChatGPT are part of a long technology continuum driven by Moore’s law, the observation that transistor capacity doubles every two years. To get in on AI’s surging growth, says Munro Partners’ Nick Griffin, investors should focus on the big – and not-so-big – names already poised to come out on top in the “race to shrink”.

Despite increased volatility emanating from the banking sector, tech stocks have been supported by falling bond yields on fears the global economy could slip into recession this year, with big-name companies leading the gains.

AI language generators like ChatGPT pose about as much threat to advice as robo does, which is to say not much. But much like robo, ChatGPT and its contemporaries might just provide advisers with an efficiency tool that can help build scale and better service clients.