AI is transforming scale

Advisors responsible for five times as many households?

Could artificial intelligence allow financial advisors to serve that many clients while maintaining the same service level?

Mike Byrnes, owner of Byrnes Consulting, LLC, explored this possibility in his latest Rethinking65 article, “Advisors Responsible for 500 Households?  AI’s Potential to Transform Scale!”

Mike interviewed Stan Gregor, CEO of Summit Financial, a $30 billion RIA.

Gregor shared how Summit is investing millions of dollars in AI and how the technology could fundamentally change the way financial advisory firms operate.

Here are 10 key takeaways:

1. Increase advisor capacity. An advisor who can effectively manage 100 households today could potentially manage 500 households with AI while enhancing the service provided to clients.
2. Rethink how work gets done. AI isn’t just about completing existing tasks faster. It can fundamentally change business processes, eliminating unnecessary steps and automating workflows.
3. Transform account opening. What once took an hour or two could potentially happen in seconds as AI captures information and automatically routes it to operations, performance reporting, custodians and other areas of the business.
4. Make better use of client data. AI can help advisors analyze information, uncover insights and become more knowledgeable about their clients.
5. Customize reports on demand. Rather than being limited to standard technology-provider reports, advisors can use AI to make specific changes and customize presentations on the fly.
6. Invest in AI capabilities. Summit Financial is making a multi-million-dollar investment in AI, including internal resources and collaboration with its parent organization and outside technology providers.
7. Expand existing client relationships. Better information, analysis and customized presentations can help advisors demonstrate additional ways to serve clients and potentially manage more of their assets.
8. Generate more referrals. Advisors are already reporting that clients are impressed with some of the new AI-powered capabilities and sharing their experiences with friends and professional networks.
9. Create a competitive advantage. Firms that use AI effectively may deliver a better client experience, improve productivity and differentiate themselves from competitors.
10. Recognize who AI could replace. Gregor offered a memorable perspective: “AI is not going to replace the advisor, but who it will replace is the advisor who is not using AI.”

The overall learning is that AI could dramatically change the capacity and economics of financial advisory firms.  Advisors may have opportunities to serve more households, deepen client relationships and grow their businesses without proportionally increasing staffing.

Need a Speaker on AI and the Future of Financial Advice?

Mike Byrnes is a national speaker, writer and owner of Byrnes Consulting, LLC. He helps financial advisors and businesses capitalize on opportunities in artificial intelligence, business planning, marketing strategy and business development.

Mike is available for keynote presentations, breakout sessions, workshops, webinars and customized consulting engagements. Whether you’re looking to educate an audience about AI, help your team identify ways to become more effective, or develop strategies to grow your business, Byrnes Consulting can help.

Contact Mike Byrnes to discuss a speaking engagement or consulting opportunity.

Watch a “Short” from this interview, part of Byrnes Consulting’s “Hot Takes”:

Watch the full interview: