Part 8/10:
As clients become more informed—armed with AI-generated insights—they will demand higher levels of expertise and transparency. They will scrutinize proposals and ask more advanced questions, such as "Where are the gaps in your reasoning?" or "What are the alternative strategies?" Consequently, financial advisors need to adapt, incorporating AI tools into their workflows and developing skills to interpret and challenge AI outputs effectively.
The Ethical and Social Dimensions
The rapid adoption of AI in finance also raises ethical questions. The widening AI-induced wealth gap could concentrate wealth among those who utilize these tools, posing concerns about disparities. Conversely, AI democratizes access to sophisticated knowledge, empowering a broader base of investors.