How AI Will Transform Advisors' Investment Management Workflow

What You Need to Know

Generative AI will help advisors make better use of market analysis, investment outlooks and other data and research.
For reps who manage portfolios, AI will reduce inefficiencies.
AI will also make model marketplaces easier to navigate and enable advisors to generate commentary on demand.

The financial landscape is evolving at an unprecedented pace, driven by technological advancements that are reshaping the way advice is delivered. Among these, generative artificial intelligence stands out as a force poised to revolutionize how advisors manage client portfolios.

As we look toward 2025, the integration of generative AI into the money management workflow promises to help wealth management firms and advisors add scale, reduce risk and improve outcomes.

Information Into Action

Financial advisors are inundated with information and simply don’t have the time to sort through it to find value. From real-time market data and firm-specific outlooks to capital markets assumptions, allocation guidance and manager recommendations, only a fraction of the available information is utilized.

The challenge is not just the volume of information but also how to access it. Post-COVID, email channels are overloaded, and while many wealth firms store this information within their workstations, it’s often difficult for advisors to navigate or stay current with updates.

In my experience, I used to get excited about new research guidance or resources my team would generate, only to be disappointed when I learned that only a fraction of advisors actually saw it. We worked tirelessly to create impactful resources, but the delivery mechanism always failed us.

This is where generative AI can make a meaningful impact. Its ability to aggregate data, distill the most pertinent insights, and apply them to individual portfolios upon request not only enhances the decision-making process but also enables advisors to provide more tailored and timely advice to their clients. Imagine a world where advisors have instant access to the most relevant information, empowering them to make smarter decisions and deliver unparalleled value to their clients.

Rep as PM Will Actually Get Easier!

I’ve spent the majority of my career trying to solve the inefficiencies that occur in a rep as portfolio manager platform. I have worked on new trading technologies and model-based practices to add scale, narrow diligence, and increase day-to-day awareness of what’s happening and what could happen in various scenarios. While effective if adopted, these solutions are not perfect. What excites me now is that I believe this is all about to change.

With the ability to reconcile a firm’s in-house research points of view or supplement them with an asset manager’s insights, advisors can create alignment within a book of business by client account. They can see which accounts need to change, understand the impact, and act upon those changes with a click. Additionally, performing scenario-based stress testing around specific events like oil price fluctuations allows advisors to see which accounts are most impacted, receive suggestions for improvements and take action.