“Our core algorithm is based on reinforcement learning, which is the class of AI algorithms used by Google DeepMind to achieve above-human level performance in a variety of tasks.
“The AdviceBridge system can learn from each client's compounding data as the years go by, thus improving the advice that it is giving. Much like a human adviser as their knowledge and experience grows.”
How AI is improving productivity
Likewise at Wealth Wizards, AI is not a new concept to the advice technology provider.
“[We] have been experimenting with AI in our products for several years, predominantly focused in the early years on improving adviser productivity and quality assurance,” says Wealth Wizards' chief technology officer Phil McGaw.
“These include use cases such as pre-populating fact-finds in real-time, based on a verbal conversation between the adviser and the client. Also, machine learning models that identify anomalies in advice cases across a firm.”
And this year, McGaw says the provider introduced data insights powered by machine learning.
“These enable our financial services customers to look across advice cases that go through the Wealth Wizards platform, and understand correlations between customer demographics such as generational, net income, home ownership status, etc and get a better understanding of what advice or guidance is providing good outcomes for these segments.
“We appreciate the industry may be sceptical about the value of AI in financial advice. But as long as we continue to make the explainability of any AI solutions at the front and centre of developments, we feel that will provide confidence to our customers to start looking at how it can benefit them.”
True Potential chief executive Daniel Harrison likewise says the principle behind the group’s use of technology is improving interactions between advisers and clients, and that it sees opportunities for AI to support this.
“We’re continuing to investigate new ways of using AI within our live chat function. Using the technology to handle basic queries like password recovery and withdrawals means that clients receive timely responses, reducing waiting times and enhancing their overall experience. It also frees up our advisers’ time.
“We are also using AI to streamline information gathering. So when clients make requests like withdrawing funds but they fail to specify the policy to withdraw from, our AI tech will automatically ask for more information.
“We’re also looking at ways of incorporating AI into compliance processes. While this won't replace our human compliance function, it will act as an initial safeguard.
"For example, we plan to use AI to assess suitability reports against predefined standards, providing immediate feedback to advisers and ensuring smoother submissions that benefit our clients.”
