06.28.24

Financial Industry Grappling With AI's Gifts and Perils, Executives Say

by: Ross Kerber and Suzanna McGee

The spread of artificial intelligence (AI)-based systems offers big opportunities for financial services firms, executives said at an investor conference staged by Morningstar last week in Chicago, but asset managers also face higher stakes than other consumer-facing businesses because they manage sensitive information. In theory AI, will simplify many routine tasks like filling out compliance forms or developing portfolios that are not so complex, leaving financial professionals more time to focus on human interactions or problems that require deeper thinking, said investors and technology experts. "There are some things that the machines could smooth over, and then a financial advisor could spend more time servicing their client," said Karen Zaya, a Morningstar senior research analyst who follows investment managers' use of technology. Brenda Ingram, a Chicago-based financial advisor, said she hopes AI systems could save time and expenses on preparing things like compliance reports. "The mundane, if you can get the AI to do it, I think we're going to like it," she said.

Read the full article on Reuters