INDUSTRY INSIGHT
YOUR FINANCES
SPONSORED CONTENT
AI AND ITS IMPACT ON THE FINANCIAL ADVISORY WORLD
You can’ t even turn on the TV or computer these days without hearing and seeing Artificial Intelligence( AI) and its impact on the world. It is truly amazing how quickly technology advances and changes the game in many industries. Ever since ChatGPT was founded in 2022, we have seen rapid advancement in AI capabilities in everyday life. As financial advisors, we have seen some great advancements in AI that can make our lives and those of our clients easier, but there are also dangers involved with AI that need to be addressed and handled going forward.
Just recently, we subscribed to a piece of software that takes notes on our client meetings and summarizes and organizes them so we can add them to our client database. It even prepares an email that we can send out with a summary of the meeting, including to-dos on our end and on the client’ s end. Coming soon for us is a client meeting scheduling tool that will reach out a month before we are due to meet with an email and allow the client to schedule on our calendars. It will send a reminder email one day before the meeting. Another tool we have allows us to enter a client’ s tax return, and it gives us a summary with tips on things to discuss with the client and allows us to run tax projections based on the prior year’ s return. These are some tools that have saved us immense amounts of time, and there will be even more going forward.
On the negative side, AI can help scammers to steal from people. I was at a conference recently, and the speaker showed us a video where he spoke a phrase in German and then Polish. It looked and sounded just like him, but it wasn’ t him! A couple of my family members have received phone calls from individuals who claimed to be my children and acted as if they were arrested in another state and needed money for bail. They said that it sounded just like my kids! We will need to continue to build in even more safeguards so perpetrators can’ t steal from us or our clients, as these scams will become increasingly sophisticated over time.
A big question people in our industry are asking is whether AI will replace financial advisors. We feel very strongly that it will not happen. A few years ago,“ Robo-Advisors” were supposed to replace us. Robo-Advisors are automated investment platforms people can use fully online to manage their assets. Many of you may not have even heard of them, because they never took off like some people expected. The problem with them, that will be similar with AI, is that they cannot simulate human emotions and behavior and build relationships of trust. Furthermore, they cannot engage in conversations with people where things may be uncovered that were not even considered prior. It is strange to think about it this way, but AI lacks a moral compass as well as personal accountability for incorrect information.
In looking for a financial advisor, it is important to make sure there is a blend of a strong human trusting relationship and a willingness to embrace the good that AI and technology can provide to generate better outcomes as you navigate your financial lives. If you don’ t feel you are getting that, we would love to have a conversation with you!
Securities offered through Osaic Wealth Inc., Member FINRA / SIPC. Investment Advisory Services offered through Osaic Advisory Services, LLC( Osaic Advisory). Osaic Wealth and Osaic Advisory are separately owned and other entities and / or marketing names, products or services represented here are independent of Osaic Wealth and Osaic Advisory.
David Hoffmann, CEO, CFP ® Financial Advisor
David Hoffmann has 28 years of experience as a Financial Advisor and is the CEO of Justabout Wealth Management. As a CFP ® designee, he counsels clients on financial planning and investments. He also serves companies by providing retirement plans.
Just moved in at 1350 Old Pond Road, Bridgeville 15017.
For further information: Justabout Wealth Management, 1350 Old Pond Road, Bridgeville 15017 Office: 724.754.1440 justaboutwealth. com
SOUTH FAYETTE ❘ WINTER 2025 11