The headline of McKinsey’s recent analysis of artificial intelligence and its impact says it all: “AI — the time to act is now.”
“Artificial intelligence will soon change how we conduct our daily lives. Are companies prepared to capture value from the oncoming wave of innovation?” asked partners Gaurav Batra, Andrea Queirolo and Nick Santhanam.
“We believe that the advent of AI opens significant opportunities, with solutions in both the cloud and the edge generating strong end-customer demand,” the McKinsey consultants explain.
“But our most important takeaway is that companies need to act quickly. Those that make big bets now and overhaul their traditional strategies will emerge as the winners,” they conclude.
McKinsey Global Institute’s research, released in September, shows that AI is expected to lead to dramatic growth and economic expansion, like that tied to the development of other disruptive technological developments such as the steam engine.
AI’s impact, for instance, could increase annual gross domestic product growth by about 1.2% through at least 2030 — which equates to about $13 trillion of new economic activity.
In wealth management, AI can give recommendations to advisors and clients on the best course of action in setting goals and managing their investing, for instance; it can stress-test portfolios and evaluate risk tolerance, analyze previous client behavior and even compare similar clients to predict life events.
A recent Aite report says that while “wealth management is characteristically a human and emotional endeavor,” with constant changes in regulation, target markets, global uncertainty and “disruptive innovation,” it’s expected that AI will gain momentum over the next three years.
But how can financial advisors integrate AI in ways that help them and their clients?
To help advisors get a better understanding of what AI is all about and how it can be used to improve their business results, ThinkAdvisor will host an educational webcast on this topic starting at 2 p.m. Eastern time this Thursday, Nov. 29.
A panel of the following three speakers will share insights and answer questions:
- Doug Fritz, CEO & Founder, F2 Strategy, Inc.
- Tommy Marshall, Fintech Advisor/Consultant
- Gavin Spitzner, President, Wealth Consulting Partners, LLC.
Participants can sign up here for the online event.