By now, most registered investment advisors are familiar with automated advice platforms, or robo-advisors. While these services have been a disruptive force, the machines haven’t “taken over” in the dystopian sense that some had originally feared. In fact, many RIAs have successfully leveraged new technology to grow and improve their practices.
In the same way that RIAs have used robo-advisory platforms as a complement to their core business of building relationships, artificial intelligence could provide similar benefits in the coming years.
What is artificial intelligence?
In the most basic sense of the term, artificial intelligence involves abdicating portions of human intelligence to a computer. This can take many forms, but in most cases the computer incorporates different data points to come up with algorithmic decisions—providing humans with better outcomes than they could otherwise produce on their own....