With offerings ranging from mobile apps to automated investment platforms, financial services now offer greater transparency, personalization, speed, and, most importantly, accessibility.
Incorporating AI in financial planning and portfolio construction offers immense potential in terms of efficiency, accuracy and security. It helps optimize sales and prevent fraudulent transactions while also considering a wide range of factors that humans, however experienced, can't compete with.
Research has shown that artificial intelligence performs better than us over short periods, and as it gains experience and expands, it will eventually surpass us entirely.
To give you an idea of the extent of AI's capabilities, an American named Jackson Greathouse Fall recently asked the popular ChatGPT app to show him the best ways to invest $100 to generate the most profit. Following the bot's advice, the man founded a full-fledged business and reported earning around $1400 in a single day. After selling a 2% stake to an investor, his company is now said to be valued at $25,000, without even having sold a single product. It is essential to approach this information cautiously, but it's still impressive.
And what about financial advisors? What is the future of these keepers of our portfolios, considering the rise of chatbots that can perform similar tasks? Many are questioning the relevance of this profession, especially with the increasing popularity of robo-advisors.