Want Better Relationships with Clients? Advisors Are Asking AI for Help

Artificial intelligence may not only come for our jobs one day, but for our very souls. In a bleak future, the last remaining husks of flesh and bone will bow down to their all-seeing, all-knowing computer overlords, begging data centers for a single drop of water … For now, though, AI is a pretty handy tool for financial advisors. 

Nearly two‑thirds of advisors believe generative AI’s greatest impact will be improving client communications, according to a Morningstar report. That doesn’t mean that clients are now mainly interacting with a computer program. It’s the opposite, actually. AI tools can take care of a lot of the prep and post-work for meetings, allowing for better, more thoughtful dialogues between advisors and clients. 

A Little Help from My AI Friends

Advisors spend about 52% of their time on client-related activities like identifying goals and customizing strategies, but most would like to spend a lot more time on those tasks. “AI will most likely be a tool that can help them get there if they are strategic about how and where they plug it into their workflows,” said Joseph Agostinelli, senior director of market research at Morningstar.

The report also found:

• Some 26% of advisors use AI for meeting summaries, note-taking and drafting emails.
• A similar number use it for research and due diligence on investment products and strategies.
• About a quarter use AI for brainstorming talking points, like market trends or geopolitical developments before client meetings.

“Specifically, if the advisor knows the industry or company their client works for, they use AI to gather news updates,” Agostinelli said. “Are there layoffs? Are there large mergers or acquisitions? That type of information could help address relevant topics in the meeting.”

Client Connection. It’s unclear whether clients are recognizing improvements when their advisors use AI tools, but it is what plenty of clients are encouraging. Some 43% said their confidence in their advisor would increase if they knew they were using AI to make their practice more efficient, per a Morningstar survey.

A dystopian future run by AI is just one possibility. But who knows, maybe humans and machines can coexist. Maybe.