Credit: Alexander Limbach/Adobe Stock
Altruist spooked the holders of wealth management firm stocks earlier this week by unveiling a new, artificial intelligence-based system that can develop personalized tax strategies.
Jed Finn, head of wealth management at Morgan Stanley, encouraged humans to control their emotions.
Morgan Stanley has been developing AI-based planning tools for advisors for about 10 years, Finn told audience members at a conference in Key Biscayne, Florida, that was organized by UBS Financial Services.
The company has been predicting that the future of wealth management will involve an integration of humans and technology since at least 2016, and Morgan Stanley itself has developed about 3,500 AI-based planning tools, Finn said.
"But the important point is that an individual tool is a tiny part of the capability ecosystem that is required to help clients achieve their goals," Finn added. "It has to fit as part of a platform. It has to be connected to products. There needs to be relationships with third-party managers to be able to deliver the advice. It has to be wrapped in a way that clients can understand and take action on."
Finn predicted that AIs will make live-human wealth advisors more effective by helping them with administrative tasks, such as opening accounts and keeping beneficiary lists up to date, and by offering clients support at night and on weekends.
AIs can also help with the details involved with tasks such as building clients' portfolios, Finn said.
For advisors working today, he said, the AI-based systems will increase efficiency.
"For our developing teams — folks who are just joining in the industry, the next generation — the steepness of their development trajectory will go up massively," Finn said.
Morgan Stanley streamed Finn's remarks live on the web and posted a recording on its website.
Credit: Alexander Limbach/Adobe Stock
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