The Financial Advisor's Caddy: AI-Based Planning

This results in more appropriate plan builds, increasing the universe of strategies to achieve a client’s goals. Whether they’re saving for retirement, budgeting for a child’s college tuition or purchasing their first home, an AI-based solution can arm the advisor with the best option every step of the way toward that goal.

AI can also assist in identifying and mitigating risk while eliminating advisor bias. It achieves this by analyzing a client’s finances, demographics and financial goals. The technology is capable of contextualizing the next best financial decision based on these elements, with the end goal of crafting a truly holistic financial plan.

Personalization and Improved Client Engagement

Just as a caddy takes into account their golfer’s strengths and weaknesses when preparing for a match, personalization in the advice industry has been taking root.

Younger generations that are set to benefit from the pending great wealth transfer, including millennials and Gen Z, have been instrumental in driving this trend. Rather than accepting the investment ideas of their forebears, many younger investors are selecting investments based on their values. This accounts, in part at least, for the uptick of environmental, social and governance investing in recent years.

AI planning tools can tailor products based on clients’ assets, goals and belief systems. These solutions can also act as a proverbial sandbox for clients, allowing them to play around with various forecasted outcomes and choose the best path to their goals.

Adapting to the Course

AI-based planning solutions help financial advisors increase their efficiency, improve their decision-making and deliver bespoke service to their clients — all in the name of enhancing engagement and deepening relationships.

Caddies are invaluable when it comes to the ultimate success of golfers, crafting strategies based upon their strengths and the layout of the course.

AI solutions play a similar role for advisors, guiding their decisions and empowering them to offer advice and strategies to meet a client’s holistic financial goals — whatever those goals may be.

Ken Lotocki is chief product officer and co-founder of Conquest Planning, a financial planning technology platform that leverages AI to help advisors build personalized, dynamic plans.