Advisors: Be the Indiana Jones of your own AI adventure

The integration of artificial intelligence into multiple aspects of our lives is no longer a futuristic prediction but a vivid reality. Case in point: Microsoft recently redesigned its keyboard for the first time in decades — not to make room for extra characters or emojis but to add a key that launches the tech behemoth's AI-powered assistant, Copilot. 

AI's increasing pervasiveness over the last year has certainly impacted wealth management. According to Orion's most recent Wealthtech Survey, 38% of advisors said AI and machine learning were the most disruptive trends in wealth management — up from 23% just a year ago. The proportion of advisors planning to use these technologies also rose, from 18% to 30%, during that time.

Yet caution and conservatism are still industry bywords when responding to these new technologies, and among  financial advisors, whose professional success often hinges on adherence to various rules and regulations, fear of the potential threats and challenges of the new and uncharted technology are real. 

However, while some advisors await legislation that will give them a concrete set of guidelines regarding permissible uses of AI technology, the rest of the world — which includes their clients — is already beginning to adapt in incredible ways. 

While it can be understandably nerve-wracking to wade into the unknown, I believe advisors must approach this new tech with a sense of adventure. Here are several starting points for exploration.

The temple of AI tools

The best and most widely used AI tools today are OpenAI's ChatGPT and Google's Gemini, both of which offer some level of free access. 

One of Gemini's most attractive features for financial advisors is its integration with financial data from Google Finance. This means that when asked to conduct high-level investment research, Gemini is capable of bringing historical data into the response narrative. Note that while the subsequent outputs represent a helpful starting point for advisors, all information should be verified against other reliable sources. 

Another user-friendly tool is the AI software now embedded within Google Chrome. Similar to engaging directly with an AI chatbot, users, after enabling the feature and inputting searches into Google, will receive AI-generated responses.

READ MORE: Orion tech president on the promises and pitfalls of AI

Some fortunate advisors working with tech-forward firms may already have access to generative AI-driven tools that can elevate efficiency and client service. Certain firms are integrating AI capabilities into their tech stacks in creative ways, including their communication platforms and portfolio analysis and comparison tools. However, for advisors unsure where to start, experimentation with these tools is the perfect first step.

The use-case crusade

Currently, advisors are primarily using AI for tasks like taking notes, automating replies and expanding upon existing content. For example, a technology now embedded in many email applications allows advisors to type a sentence and opt to "expand" to receive a few paragraphs' worth of response, which is near perfect every time. 

Support with marketing materials, thought leadership and social media is another great use case for tools like ChatGPT and Gemini. Both can aid advisors in the creation of content that can be adjusted to their liking — and to compliance's satisfaction — before it is disseminated more broadly. Given that this technology is in its infancy, there are still a countless number of use cases yet to be discovered. Every day, we are learning more about what this technology can do for firms. The crusade to understand it is all part of the adventure.

READ MORE: Enhancing firm-level advisory compliance in the age of AI

An ark of infinite potential

Humans have a tendency to let fear take the wheel when it comes to the adoption of new technology. But if we open our minds to the incredible possibilities that exist with AI, we may be able to change the world in positive ways we never before imagined. 

For example, I recently participated in a think tank focused on advisors' future in the nascent AI era. An intriguing idea that emerged is the vast scale this type of intelligence could achieve, potentially allowing us to more effectively and comprehensively serve middle-class American workers and other traditionally underserved markets. 

Such an advancement in our ability to deliver financial advice to more of the population could be transformative, significantly enhancing the democratization and inclusiveness of these services. 

READ MORE: For financial advisors, is AI a job taker or maker?

As with many technological advancements in our industry, this revolution opens up opportunities for advisors to more fully embrace the most human aspects of their roles. AI acts as a potent enabler, giving advisors additional time to delve into the principles of behavioral finance. This enhancement allows financial advisors to more effectively assume a unique position in their clients' lives — one that no one, and definitely no software, can fulfill — that of a tangible, empathetic guide navigating clients through some of the most important decisions they will ever face.

As advisors begin to explore this realm of possibilities in more depth, it's important to keep in mind that immediate implementation isn't necessary, but a baseline understanding of the technology and its potential is essential. Though AI is certainly not without controversy, this technology has made significant headway in its first year — and this is just the beginning.

When I started Redtail Technology two decades ago, the concept of simply being web-based wasn't widely embraced. Naysayers called our company a fad, dismissing the validity of our offering because they doubted advisors would allow their data to be put online and stored in a server outside of the four walls of their business. 

Now this type of technology is completely ubiquitous — and while technology can certainly be intimidating, the advisors who lean in early will benefit from the early adopter advantage. They will be among the first to unlock the tech's potential and learn how to apply it effectively, placing them well ahead of their peers who waver or procrastinate. 

The Indiana Joneses adopting this new technology will win out in the end. 

The world is going to keep changing regardless, so the best approach is to embrace the adventure and change with it. And who knows, you might uncover a few treasures in terms of opportunity along the way.