August 5, 2024

Categories: Finance

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The Impact of AI

Can you envision shaping your financial future relying solely on AI? In this dynamic era where technological advancement is a norm, artificial intelligence (AI) has left a footprint in nearly every industry. Certainly, the financial advisory industry is of no exception.

For what might take hours for an average financial services consultant, AI can complete analyses in mere minutes, with unbelievably fast speed that it can be difficult to fathom for someone unfamiliar with technology. AI’s efficacy easily surpasses analytical capabilities of human financial services consultants, freeing up time for individuals to focus on other duties, and even enjoy precious moments with their families out of work.

This meticulous task of continuously analysing events in order to investigate their effects on market conditions can be entrusted to AI, a smart way to streamline workflows and enhance overall work efficiency for the company. However, beyond such enticing benefits of AI lies a fatal limitation which cannot be overlooked – it is not human.

An Existing Gap in AI That Cannot Be Bridged

Like most technology, AI faces its own set of challenges. Where there may still be room for AI’s further refinement to make a significant mark in the financial advisory industry, there is one aspect that AI will certainly struggle to replicate. Genuine human touch. That human connection is simply necessary in creating a lasting bond between two human individuals for a deep commitment to agreements.

Building a connection with AI is easier said than done, much less to foster trust and collaboration with one. After all, AI lacks the intrinsic ability of empathy. AI may fall short in fully grasping the emotional troubles a client could possibly be facing, and fail to effectively review choices to be taken with current circumstances in mind. On the other hand, depending on the personality of a client, a human financial services consultant can tailor their expressions and reactions in a suitable manner catered to a client to optimise outcomes. Whereas an AI may struggle to appropriately address underlying issues faced, failing to arrive at the best decision for the client. That is not all.

AI has inherent limits in both interpreting and conveying body language. Neither does it excel in replicating the calming presence of a human, such as a financial services consultant in front of a client. And as one would understand, to be able to pick on subtle non-verbal cues and move conversations accordingly is crucial in relationship building.

Therefore, AI may fail to build strong relationships with clients due to its likely struggle in making complex decisions and lack in adaptability that clients may prefer. While AI’s impressive analytical skills may provide a stable foundation to financial services consultants, it cannot fully replace the work of a human. Unlike AI, human financial services consultants have the sheer ability of providing advice that transcends mere objective answers derived from raw data and algorithms in AI. Undeniably, tailored advice customised to the unique wants and needs of each client will yield the best results for all.

Where important issues such as finance is involved, that genuine human touch and unexplainable comfort provided by a human play a critical part. Connect with yours today to foster stronger relationships for brighter outcomes.

Disclaimer:‍‍‍‍‍‍ Investment carries certain risks. You should not just rely on results as an indication of your financial needs. You should understand and familiarise yourself with any investment and the associated risks before investing. You are also recommended to seek professional advice before making any decision to buy, sell or hold any investment or insurance product. The views and thoughts expressed in the post belong solely to us, and not to Manulife Financial Advisers Pte Ltd, or any other group of individuals.

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